The case concerns anti-competitive tender-rigging practices
A fine of 1,081,339.64 euros was imposed by Competition Commissionin total, to 17 companies that are active in the market of surveying services and support services for horizontal collusion in rigging tenders. It is noted that the leniency program and the dispute settlement process were utilized.
In detail, the Competition Commission states in its announcement:
The Plenary Session of the Competition Commission (EA) with the no. 869/2024 its unanimous decision, during the simplified dispute settlement procedure of Article 29a of Law 3959/2011, accepted the relevant dispute settlement proposals submitted by 18 companies active in the market of cadastral study services and supporting services for the creation of a national cadastral register throughout the Greek territory and imposed fines totaling 1,081,339.64 euros.
The case concerns anti-competitive tender-rigging practices.
The research was launched in November 2021 in the market for cadastral study services and supporting services for the creation of a national cadastral register. In total, on-the-spot checks were carried out in 26 enterprises.
One of the audited companies submitted an application to be included in the Leniency Program for exemption from fines, in accordance with EA Decision 526/VI/2011.
Eighteen of the audited companies were subjected to a Dispute Settlement Procedure, based on par. 14 of the decision EA 790/2022.
From the investigation it was established that some of the audited companies came into contact in the context of meetings and personal contacts, in order to agree on the distribution between them of the individual twenty-eight cadastral studies of the tender announced on 04.10.2013 by the National Cadastre and Mapping SA ( Catholic successor of which is today the NPDD under the name GREEK LAND REGISTRY) for the “Awarding of cadastral study contracts & supporting services for the creation of a national cadastral register in the rest of the country”, with the determination of the bidder for each of them. These companies participated in a horizontal cartel to rig tenders and specifically in an agreement or concerted practice regarding the distribution of the studies of the relevant tenders with the determination of the lowest bidder for each of these studies (horizontal market allocation cartel). With the above behavior, seen as a whole, the companies involved proactively reduced the uncertainty that autonomous competitive behavior entails.
The horizontal partnership in question had a single and lasting nature and extends in total (with individual differences for the parties involved) from September 2013 until December 2020.
When calculating the fine, the EA calculated the basic amount of the fine, applying the highest rate it has applied in the past in similar cases of rigging public tenders. However, for all the companies involved, the amount of the fine was limited to the maximum amount that can be imposed by law, i.e. 10% of the total turnover of each company at the time before the decision to use or stop the use of the infringement was issued, case by case.
With its Decision, the EA granted the company and the applicant the benefit of leniency with full exemption from the fine, according to par. 47 of Decision EA 526/V/2011 (Leniency Program).
The EA imposed reduced fines on the other companies, due to the dispute settlement process (15% reduction), for the fulfillment of the identified violations of Article 1 of Law. 3959/2011 and 101 of the TFEU, as follows:
n/a Involved party Final amount of fine (Euro)
1. ADT 219,456.65
2. ILIDA 144,337.94
3. DOXIADI OFFICE 107,766.86
4. ROIKOS 105,368.82
5. HOROVATIS 99,177.48
6. ERATOSTHENIS 92,091.83
7. FOTOPO 78,505.17
8. STUDY 50,964.90
9. PLANNING 39,822.42
10. PLANETIKI 28,378.05
11. ANYSMA 27,648.53
12. SECTION 23,532.72
13. GEOGRAPHY 21,450.22
14. GEOIMAGING 17,844.80
15. TECHNOLOGY 15,759.76
16. ELPHO 8,059.05
17. GAIA IAPETOS 1,174.44
TOTAL 1,081,339.64
The total amount of fines imposed amounts to 1,081,339.64 euros.
The Competition Commission is reminded of the leniency program and the various settlement process. Specifically:
Leniency Program
The finding of a company’s participation in agreements of a cartel nature, i.e. in secret agreements between competitors, the object of which is the determination of prices or quantities, the allocation of customers or market shares, or on the basis of which tenders are rigged, can lead to significant fines from the Competition Commission, in criminal sanctions against the natural persons responsible and in the exclusion of the companies involved from public tenders and concession contracts for three years from the issuance of the decision.
Joining the commission’s leniency program has significant advantages for businesses, business associations and natural persons involved in such agreements, as it achieves:
* Total or partial exemption from administrative fines or their reduction,
* Elimination of the penalty or a reduced penalty for the guilty natural persons,
* Complete exemption of the business from any kind of administrative sanctions, and
* Non-exclusion of businesses from public tenders or concession contracts.
For the conditions and the procedure for joining the EA’s leniency program, see https://www.epant.gr/nomothesia/nomothesia-antagonismou/programma-epieikias.html or contact 210 88 09 100.
For EA’s anonymous information system, visit the website https://www.epant.gr/digital/anonymi-paroxi-pliroforion/gia-polites-epixeiriseis.html
Dispute Resolution Process
The dispute settlement procedure concerns cases where companies or associations of companies admit, voluntarily and unconditionally, their participation in a horizontal collusion by object, in violation of Article 1 of Law 3959/2011 and/or Article 101 of the TFEU, and facilitate, in this way, the process of establishing the violation by the Competition Commission. In these cases, a reduction of the fine by 15% is granted under certain conditions, while benefits are also provided in accordance with article 44 par. 3A and 3B n. 3959/2011
The purpose of the dispute settlement process is to simplify and speed up the administrative process of issuing decisions by the Competition Commission, as well as to limit the number of appeals brought against the Commission’s decisions before the Athens Administrative Court of Appeal.
In this way, the EA is given the possibility to examine more cases with the same resources and with less administrative burden and thus increase the deterrent nature of its action and, at the same time, strengthen the citizens’ interest in effective and timely punishment of offenders.
