On May 29, 2024, AFCA filed an application with the Cartel Court for the imposition of a fine against Pichler (press release dated June 13, 2024).
In the period from at least June 2013 to July 2016, Pichler participated in Styria (Austria) in the field of civil engineering in a 2017, in the form of price fixing and/or price coordination, market sharing and exchange of information with competitors.
The decision is final.
Pichler cooperated with the Federal Competition Authority outside the leniency program for the full clarification of the facts and in this context submitted a comprehensive acknowledgment for the proceedings before the Cartel Court. With the involvement of the Federal Cartel Prosecutor, the AFCA therefore requested a reduced fine.
Background
The uncovered cartel affects the construction industry, with a focus on the road construction sector.
The infringement affects the entire Austrian federal territory, albeit to a varying extent depending on the company involved. Both public and private clients are affected. A large number of construction projects are involved and the investigations by the Federal Competition Authority are still ongoing. In some cases, the proceedings have already been concluded with legally binding effect.
As part of the infringement, the companies involved made agreements to help each other win contracts and thus, among other things, secure market share and maintain a corresponding level of capacity utilization. In order to achieve this common goal, price fixing, market sharing, the exchange of sensitive competitive information, such as coordination on future behavior when submitting offers, as well as the occasional formation of anti-competitive joint ventures and bidding consortia occurred.
Among other things, the companies involved agreed on the tender winner, the price to be quoted and the submission of “cover offers”, or determined that certain competitors should not submit any offers at all.
FAQ Construction Cartel Update January 2025
Further information and developments in the construction cartel can be found in the FAQ Construction Cartel Update January 2025.
Fines under the Cartel Act
The Cartel Act prohibits practices that impede or distort competition. These include price fixing or the division of markets or territories. If a violation is established, the Cartel Court, at the request of the AFCA, can impose fines of up to 10% of the total turnover of the preceding financial year. The fines are determined taking into account the severity and duration of the infringement, the degree of fault and the economic capacity and cooperation of the company concerned.