Competition and Antitrust

When Could Bidding Consortia Constitute Illegal Cartels?

Contact: Dieter Hauck and Esther Sowka-Hold; Preslmayr Rechtsanwälte (Austria)

Facts

On December 2 2013 the Supreme Court (acting as the Higher Cartel Court) issued its decision in a case concerning a tender procedure organised by a large Austrian municipality that was subject to heated debate among practitioners.(1)

 

Contracts for the provision of gas, water and heating installation works amounting to more than €100 million, sub-divided into many territorial entities, were tendered. With regard to most of the entities, the contract was awarded to the participating bidding consortia.

Following a leniency application by an unsuccessful bidder, the Federal Competition Authority and the Federal Cartel Prosecutor filed before the Cartel Court for fines, arguing that the respective bidding consortia were illegal cartels.

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