As part of its investigations into the construction industry, the Austrian Federal Competition Authority (AFCA) filed another application with the Cartel Court on 05. September 2023 to impose a fine of EUR 1.4 million on Fröschl.
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The overall infringement comprises anti-competitive price fixing, market divisions and the exchange of information with competitors in relation to public and private tenders in the sector of building construction and civil engineering, particularly road building, throughout Austria during a period lasting from 2002 to 2017.
In view of the company’s regional focus of activities, Fröschl was involved in the overall infringement in Tyrol for a period extending at least from June 2005 to February 2016.
In May of this year, the AFCA submitted a statement of objections to Fröschl, with the company recognising the facts of the case as investigated by the AFCA.
Fröschl cooperated with the AFCA outside the leniency programme to fully clarify the facts of the case, acknowledging the infringement for use in proceedings before the Cartel Court.
Due to the company’s direct involvement in the infringement covering a comparatively shorter period and due to the regional focus of activities on Tyrol, Fröschl has been classed as a secondary participant in the overall infringement.
With regard to the amount of the fine, the company’s introduction of a comprehensive compliance management system was also taken into account.
The AFCA therefore applied for a reduced fine of EUR 1.4 million, with the involvement of the Federal Cartel Prosecutor. Fröschl accepted the amount as proportionate.
The uncovered cartel relates to the construction industry, comprising nearly all segments in building construction and civil engineering, and was focused in particular on road building projects.
The infringement covers the entire Austrian territory, albeit to varying degrees depending on the company involved. Numerous public and private clients were affected by these practices, as well as a large number of construction projects.
The AFCA is still investigating many of the companies with alleged involvement. Meanwhile, some of the proceedings have been finally concluded.
The companies involved in the infringement engaged in concerted action in order to help each other to win construction contracts, thereby securing market shares and utilising their capacities accordingly, among other things.
To reach this common goal, they engaged in illegal price fixing and market divisions, exchanged competitively sensitive information relating for example to agreements on future behaviour when submitting bids and in some cases they formed anti-competitive working groups and bidding consortia.
The involved companies also agreed on which bidder should win the contract, the price to be offered and the submission of bogus offers, as well as arranging that some competitors would not submit any bid at all.
The arrangements for such bogus offers were made during rounds of talks among the competitors or at bilateral meetings. ■