SDAG cooperation
After dawn raids had been carried out in the waste sector, SDAG cooperated with the AFCA within the leniency programme to fully clarify the facts of the case, acknowledging the infringement for use in proceedings before the Cartel Court. Due to this cooperation, the AFCA applied for a reduced fine.
SDAG infringements
SDAG participated in anti-competitive price fixing, market divisions and the exchange of sensitive information during a period lasting from July 2002 until March 2021. The SDAG infringements occurred in the context of an Austrian cartel that was in place from at least July 2002 until March 2021.
“After an application for findings in February concerning the first leniency recipient, this is our first application for a waste management company to be fined. My team is working hard to sift through all the compounded evidence and swiftly bring additional cases before the Cartel Court,“ explains Natalie Harsdorf, Director General of the AFCA.
Previous AFCA investigations and court cases in the waste industry
In March 2021, the AFCA carried out dawn raids at 20 waste management companies (press release of 18 March 2021). Additional dawn raids followed a year later, when new suspicions arose as a consequence of further leniency applications, numerous whistleblower reports and the questioning of the parties concerned. The AFCA impounded significant amounts of data from companies in nearly all of the federal provinces, amounting to more than 60 TB in IT data and more than 2,000 pages of physical documents. It is still investigating a large number of other companies.
An application for findings in relation to the first leniency recipient, FCC, was filed with the Cartel Court in February 2024 (press release of 16 February 2024).
Economic sector concerned
The waste management sector is traditionally divided into waste collection, waste treatment, waste disposal and recycling. A distinction is also made between municipal waste and company waste, with further sub-segments according to material flows.
Some 300 companies are engaged in the waste management market in Austria. As well as market players that operate nationally, like the SDAG, there are also many small companies that operate only in their region.
In addition to provisions under European law, the Austrian Waste Management Act (AWG 2002) is the most important legal basis for the waste services sector; it regulates waste prevention, recycling, other recovery (e.g. energy recovery) and waste disposal. Furthermore, regional laws in the federal provinces lay down the rules for municipal waste collection, refuse charges and the planning of waste processing plants.
The AFCA investigations into the waste management sector focused on waste collection, but also covered waste processing in the form of waste separation, recycling and recovery, and the disposal of waste.
Infringements in the waste sector
The infringements covered price fixing, market divisions and the exchange of sensitive information in relation to public and private tenders. Companies thereby helped each other to win contracts, reducing uncertainty around future business opportunities, and enabling them to adapt their conduct accordingly and secure market shares as a result. By dividing up markets and customers, the companies involved created an intertwined network of cartels, which ultimately covered the whole of Austria.
Potentially damaged parties
Cartel agreements restrict competition and lead to higher prices for clients. As well as other companies operating in the sector, potentially damaged parties also include municipalities that had put the collection and disposal of waste out to tender.
Leniency without a fine
In accordance with the conditions laid down in § 11b of the Competition Act (WettbG), the AFCA may – in return for a company’s cooperation in uncovering a cartel – reduce the amount of the fine to be imposed or waive its right to apply for the imposition of a fine (see Leniency).