Traunfellner was involved – in line with the company’s regional areas of activity – as a secondary party in anti-competitive price fixing and price coordination, market division, the exchange of information with competitors in relation to public and private tenders in the construction sector from at least February 2003 to May 2017, exclusively in Lower Austria.
The illegal actions of Traunfellner 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. As a secondary party, a fine of EUR 1.7 million has been imposed against Traunfellner by the Cartel Court.
Traunfellner 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 in consultation with the Federal Cartel Prosecutor for a reduced fine.
Background
The uncovered cartel relates to the economic sector of construction, with a focus on road building projects.
The infringements cover the entire Austrian territory, albeit to varying degrees depending on the company involved. Both public and private clients were affected by these practices, as were a large number of construction projects. The investigations are still ongoing. Some of the proceedings have meanwhile been already 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, market divisions as well as 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 October 2025
For further information on and developments in the construction cartel, please refer to our FAQ Construction Cartel October 2025.
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.