On 5 September 2023, the AFCA filed an application with the Cartel Court to impose a fine of EUR 1.4 million on Fröschl (press release of 11 September 2023). The application was granted in full.
Fröschl was involved in illegal price fixing, market divisions and the exchange of information with competitors in relation to public and private tenders in the sector of civil and structural engineering in the province of Tyrol from at least June 2005 until February 2016. Due to this direct involvement, the Cartel Court has now imposed a fine of EUR 1.4 million on Fröschl.
The decision is final.
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. The AFCA therefore applied for a reduced fine.
Background
The uncovered cartel relates to the economic sector of construction.
The infringement covers the entire Austrian territory, albeit to varying degrees depending on the company involved. Both public and private clients were affected. A large number of construction projects were impacted, which is why the AFCA’s investigations are still ongoing. Some of the proceedings have meanwhile 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. 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 formed anti-competitive working groups and bidding consortia.
The companies involved agreed, for example, on which bidder should win each contract, the price to be offered and the submission of bogus offers, as well as arranging that certain competitors would not submit any bid at all.
FAQ Construction cartel update June 2024
For further information on and developments in the construction cartel, please refer to our FAQ Construction cartel June 2024.
Fines for cartels
The Federal Cartel Act prohibits any behaviour that prevents or distorts competition. This covers price fixing agreements or the division of markets or territories. At the AFCA’s request, the Cartel Court may impose fines of up to 10% of an entity’s total turnover generated in the preceding business year if that entity is found to have breached the rules banning cartels. Fines are determined on the basis of the gravity and duration of the breach, the degree of fault, and the economic strength and cooperation of the company concerned.