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Waste management update: AFCA applies to have a fine of EUR 32 million imposed on Energie AG Oberösterreich Umwelt Service GmbH

The Austrian Federal Competition Authority (AFCA) has filed an application with the Cartel Court to impose a fine of EUR 32 million on Energie AG Oberösterreich Umwelt Service GmbH (hereinafter “EAGUS”). EAGUS is a subsidiary of Energie AG Oberösterreich.

According to the AFCA’s investigations, EAGUS participated in price fixing, market sharing and the exchange of competitively sensitive information from July 2002 until March 2021. The conduct occurred in Upper Austria, Lower Austria, Styria, Carinthia, Tyrol and Vienna, as well as partly in Salzburg.

EAGUS cooperated with the AFCA during the investigations and acknowledged the infringement. The AFCA therefore applied for a reduced fine. In determining the amount of the fine, account was taken of the nature, gravity and duration of the infringement, EAGUS’s economic strength and its cooperative conduct, among other factors.

Background information

An Austria-wide cartel operated in the waste management sector from at least July 2002 until March 2021. The companies involved fixed prices, allocated territories and customers among themselves, and exchanged competitively sensitive information. In doing so, they avoided competition, secured contracts and protected their market shares. The arrangements were closely interconnected and ultimately covered large parts of Austria. The activities concerned included the collection, sorting, recycling and disposal of waste.

AFCA investigations

In March 2021, the AFCA conducted dawn raids at 18 companies. Following further tip-offs and reports, two additional companies were searched in 2022. The AFCA seized 60 terabytes of data and more than 2,000 pages of paper documents.

The investigations have already resulted in several final decisions by the Cartel Court.

Further information is available in the FAQs on the waste management cartel.

Fines under the Cartel Act

The Cartel Act prohibits practices that prevent or distort competition. These include agreements, decisions and concerted practices such as agreements between companies on minimum selling prices that have as their object the restriction of price competition for the products concerned. Where an infringement is established, the Cartel Court may, upon application by the AFCA, impose a fine of up to 10% of the total turnover generated in the preceding business year. Fines are determined on the basis of the gravity and duration of the infringement, the degree of fault, the economic strength and the cooperation of the company concerned.