The Office for the Protection of Competition in the Czech Republic has issued fines totaling CZK 157,693,000 against six companies involved in cartel agreements concerning public contracts for the repair and modernization of railway signaling and safety facilities. This decision marks a significant enforcement action against anticompetitive practices in the railway construction sector.

The companies involved, including ATE, s. r. o., AŽD Praha s.r.o., EPLcond a.s., MONZAS, a.s., První SaZ Plzeň a.s., and STARMON s.r.o., were found to have engaged in prohibited bid rigging, market-sharing, and price-fixing agreements. These actions were aimed at distorting competition and involved submitting less advantageous bids to prevent contract cancellations.

The investigation was initiated following findings from the Supreme Audit Office, which led to independent verification by the Office. On-site inspections revealed additional contracts affected by the cartel behavior, which spanned 26 public contracts valued at over CZK 850 million awarded between 2015 and 2021.

As part of the proceedings, the companies applied for a settlement procedure, admitting their anticompetitive conduct, which resulted in a 20% reduction in fines and allowed them to avoid bans on public contracts. However, two companies have appealed the fines, meaning that part of the decision remains unresolved.

This case is not isolated, as the Office has previously penalized other companies in related proceedings, imposing fines totaling CZK 46,106,000 for similar cartel activities in the railway crossing security sector.