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27.11.2024 | 🇦🇹 Austrian competition authority
The Austrian Competition Authority (BWB) and eight regional audit offices are working closely to uncover bid rigging cartels in public procurements. Public procurement markets are particularly vulnerable to anticompetitive practices due to the repetitive nature of the procurement of similar products and services, making it easier for companies to predict competitors in future tenders.
In recent years, the BWB has successfully uncovered numerous bid rigging agreements, such as the nationwide construction cartel, drywall cartel, facade construction cartel, opinion research cartel, waste cartel, and carpentry cartel, resulting in fines totaling approximately 194 million euros. Bid rigging activities have involved price fixing, market allocation, forming illegal consortia, and exchanging sensitive competitive information.
The regional audit offices also play a crucial role in detecting irregularities in procurement processes, as bid rigging undermines public trust in the integrity of the procurement process and leads to increased costs for taxpayers. The collaboration aims to raise awareness of bid rigging practices and ensure their prevention.
A checklist has been developed by the regional audit offices in collaboration with the BWB to help contracting authorities establish and enhance prevention measures, such as compliance systems, to detect and prevent bid rigging. The checklist aims to equip contracting authorities with tools to identify bid rigging practices based on the BWB's investigative experiences.
Implementing measures like avoiding client-side participation, not favoring established bidders, ensuring unpredictability in tenders, and gathering comprehensive market information can promote fair and effective competition in procurement processes. The global trend towards cartel screening procedures highlights the importance of early detection and prevention of cartel activities in public procurement.
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