The Commission for Protection of Competition has accused a total of seven companies of forming cartels across two separate proceedings. These firms are alleged to have manipulated public procurement processes for the delivery of hospital food as well as machinery and equipment for the mining and construction sectors.
Coordinated Raids and Investigations
To gather evidence, teams from the Commission conducted sudden on-site inspections at the offices of the accused firms. These actions were carried out following judicial authorization from the Administrative Court of Sofia-region and with the assistance of the Ministry of Interior’s Specialized Police Forces department.
The antitrust body is specifically investigating the potential manipulation of public tenders, which it classifies as one of the most severe forms of cartel behavior. According to the Commission, such practices—including price-fixing, market sharing, and tender manipulation—result in the loss of significant public resources.
Hospital Food and Construction Equipment Cartels
The first investigation was triggered by a signal from Member of Parliament Vasil Pandov regarding the market for food supplied to medical institutions in Sofia. Evidence suggests that three of the companies involved exchanged sensitive commercial information through a third-party consultant.
The second proceeding involves public procurement for the delivery of mining and construction machinery. In this case, evidence indicates that three enterprises coordinated their behavior during tenders, specifically by agreeing on commercial and pricing parameters.
Potential Consequences and Next Steps
The accused parties have 30 days to submit written objections to the charges and may request to be heard before the Commission. Following this period, the Commission will issue its final decisions.
If found guilty, the companies could face significant financial penalties of up to 10% of their turnover from the previous financial year. A possible next step for the Commission could be the restriction of these firms’ rights to participate in future public procurement procedures.
Frequently Asked Questions
Which sectors were targeted in these cartel accusations?
The accusations involve companies providing food for medical facilities in Sofia and those supplying machinery and equipment for the construction and mining industries.
How did the Commission gather evidence for these cases?
The Commission performed sudden on-site inspections at company offices, supported by the Specialized Police Forces of the Ministry of Interior and authorized by the Administrative Court of Sofia-region.
What is the maximum financial penalty the companies could face?
The companies may be fined up to 10% of their turnover from the previous financial year.
Do you believe the use of leniency programs is the most effective way to break secret corporate cartels?
