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UOKiK Targets Bid Rigging in Geodesy and Laundry Services

16.12.2024 | 🇵🇱 Polish competition authority

The President of UOKiK has imposed nearly 1.8 million PLN in fines on eleven geodesy companies for bid rigging and has initiated antitrust proceedings against seven laundry service providers.


The President of UOKiK has taken significant action against bid rigging in the geodesy and cartography sector, imposing fines totaling nearly 1.8 million PLN on eleven companies. These firms were found to have colluded to set the terms of their participation in public tenders, forming a large consortium that submitted a single joint bid while dividing the resulting contracts among themselves. This arrangement effectively eliminated competition, as some companies did not perform any actual work despite being part of the bidding process.

UOKiK's investigation revealed that these companies could have completed the tasks independently or in smaller groups, indicating that the consortium was formed specifically to engage in anti-competitive practices. UOKiK President Tomasz Chróstny emphasized that while forming a consortium is permissible, it becomes problematic when it restricts competition.

In a separate case, UOKiK has launched antitrust proceedings against seven laundry service companies suspected of engaging in illegal agreements related to tenders for hospital services. Evidence gathered during searches of four laundry firms, conducted with court approval and police assistance, included communications that suggested collusion on pricing for bids. This indicates that the bids were not submitted independently, potentially inflating service costs for hospitals and patients.

If the allegations are confirmed, the companies could face fines of up to 10% of their turnover for each practice. Bid rigging is particularly harmful in public procurement as it leads to inefficient use of public funds, ultimately affecting society as a whole. UOKiK has a leniency program that allows companies involved in illegal agreements to reduce or avoid penalties by cooperating with the authority.

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