Fine for cartel by building contractors involving the tender process for a school outdoor area
Two building contractors, Den Ouden and Bloem Infra, secretly exchanged the bid for the construction of the outdoor area of a school in the southern Dutch city of Roermond. As a result of their arrangement, the school in question, Yuverta, received fewer competitive bids for its contract. The Netherlands Authority for Consumers and Markets (ACM) has therefore imposed a fine. Den Ouden was the first to confess the illegal cartel, which enabled ACM to launch an investigation into it. That is why Den Ouden does not need to pay a fine. Bloem Infra cooperated with the investigation, and acknowledged the infringement. Bloem Infra therefore receives a reduction of its fine, and has to pay 59,000 euros.
Martijn Snoep, Chairman of the Board of ACM, explains: “Businesses cannot make any arrangements about who will win what contract, or exchange information to the same effect. That would lead to higher prices or reduced quality for the contracting party. That is why it is good that these businesses came clean, and notified us of their illegal arrangements.”
What was this case about?
In April 2022, Yuverta invited three companies to submit bids for a contract involving the construction of the outdoor area of its school building in the city of Roermond. Den Ouden and Bloem Infra were the only ones to submit bids for this contract. Prior to submitting its bid, Bloem Infra had shared its bid with Den Ouden. In that way, both companies knew that Den Ouden was planning to submit a higher bid, thus allowing Bloem Infra to win the contract more easily. This is also called ‘cover pricing’. With their conduct, Bloem Infra and Den Ouden distorted the competitive process. In the end, Yuverta had to put out the contract for tender again and suffered a delay in the project.
Den Ouden and Bloem Infra not only confessed their illegal arrangements, but also agreed to a fast-track procedure. In exchange, they received a reduction of their fines.
Confess your involvement in a cartel and avoid a fine
Companies that make illegal agreements and want to come clean can confess their involvement and submit a leniency request. The first company that confesses its involvement in a cartel can avoid a fine entirely. Companies that are involved in the same cartel and confess their involvement later and subsequently cooperate can receive a reduced fine.
ACM and tender processes
ACM ensures that markets work well for people and businesses. Tender processes must take place in a fair manner. More information about what you should keep in mind when submitting bids or when setting up tender processes can be found on our site with information about tender processes (in Dutch).
ACM works together with PIANOo, the Dutch Public Procurement Expertise Centre, giving contracting authorities advice. PIANOo helps contracting authorities professionalize their procurement processes by giving advice, providing tools, and practical tips.
If you are not involved in a cartel, but you do have any indications that certain businesses distort competition? Please submit your tip-off to ACM.
See also
- Filing a report with ACM (in Dutch)
- Competing within the rules (in Dutch)