The illegal actions of Leithäusl Gesellschaft m.b.H. (hereinafter referred to as “Leithäusl”) form part of a wider infringement of cartel law that has occurred across the whole of Austria, with each of the companies involved having participated to varying degrees. The large number of arranged construction contracts encompass both building construction and civil engineering projects throughout Austria, with road building projects predominating. The collusive behaviour was aimed at reducing or excluding competition, with the companies concerned helping each other to win construction contracts and thus secure market shares.
Leithäusl was directly involved in the overall infringement in Lower Austria, Vienna and Styria in the sector of civil engineering and for a period extending at least from July 2002 to October 2017.
Leithäusl 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 to the Cartel Court for a reduced fine of EUR 1.25 million, with the involvement of the Federal Cartel Prosecutor.
Background
The uncovered cartel relates to the economic sector of construction, with a focus on road building projects.
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, 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 formed anti-competitive working groups and bidding consortia.
The companies involved also agreed 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 February 2024
For further information on and developments in the construction cartel, please refer to our FAQ Construction cartel UPDATE February 2024.
Fines for cartels
The Austrian 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.