Railway Design Cartel Revealed thanks to Leniency Programme, the Office Imposed Fine on SUDOP Praha

2021-02-15
By its first-instance decision, the Office for the Protection of Competition punished bid rigging agreement on projecting high-speed rails concluded by SUDOP PRAHA a. s. (hereinafter referred to as “Sudop”) and Výzkumný Ústav Železniční, a. s. (railway research centre – hereinafter referred to as “VUZ”).

The Office imposed fine amounting to CZK 9,302,000 on Sudop company. VUZ informed the Office on the existence of the cartel agreement within the so-called leniency programme and thus the fine on VUZ was not imposed. The decision has already come into force.

Petr Mlsna, the Chairman of the Office, commented on the decision as follows: “High-speed rails´ projecting is necessary for modernization of the Czech transport infrastructure and collusion of designers, which makes the public contract more expensive, is quite unacceptable. We will continue monitoring this sector carefully.

The anticompetitive conduct of the above-mentioned undertakings implemented between November 2014 and May 2015 consisted in coordination of bids within tender concerning preparation of technical and operational study of high-speed rails called Technical and Operational Study – Technical Solutions VRT awarded by Správa železnic (state organisation dealing with administration of rails). Coordinated bids with the aim to win the above-mentioned tender were submitted by the association called “Společnost SP + Acri + MTP Technická řešení VRT.” Sudop was the leading member of the association. The above-mentioned companies distorted the competition within the mentioned tender infringing the Competition Act.

The Office dealt with the case on the basis of the notification made by VUZ, which informed the Office, within the so-called leniency programme, on the existence and details of the cartel agreement. VUZ was the member of the cartel agreement and it asked for not imposing the fine. As VUZ met all the legal requirements, the Office granted VUZ the immunity in the decision. Leniency programme is the tool crucial for investigation of anticompetitive agreements. It motivates the members of the cartel agreement to notify the competition authority of its existence in exchange for not imposing or reducing the fine.

Sudop made use of the so-called settlement procedure, within which it admitted committing the illegal conduct. Consequently, its fine was reduced by 20% and it did not file an appeal against the decision.

Press Unit of the Office

21/027 – S0129/2019

2024-04-09 / Zásilkovna will share pick-up points thanks to the intervention of the Office, more options for consumers The Office for the Protection of Competition (“the Office”) accepted commitments from an undertaking Zásilkovna s.r.o. consisting of an amendment to the contractual terms and conditions concluded...

2024-04-05 / Fine of CZK 8 million for Another Pet Food Distributor Forbiding Lower Prices By the first-instance decision, the Office for the Protection of Competition (“the Office”) imposed a fine of CZK 8,656,000 on the undertaking Dibaq a.s. for entering into prohibited agreements on...

2024-04-03 / The Office Imposed a Fine of CZK 72 million on Distributor of Moulinex, Rowenta, Krups and Tefal Products The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed a fine of CZK 72 333 000 on the undertaking Groupe SEB ČR s.r.o. for prohibited agreements on resale...

2024-02-13 / The Office Imposed a Record Fine of CZK 125 million on ELECTROLUX for Anticompetitive Conduct The Office for the Protection of Competition (hereinafter referred to as “the Office”) punished the undertaking ELECTROLUX, by imposing a fine of CZK 125 404 000 for long-term anticompetitive conduct...

2024-01-19 / The Office Will Share Its Experience Using the DATACROS Tool The results of the Datacros II project, which focuses on investigating corruption, organised and financial crime using innovative techniques, will be presented on Tuesday 30 January 2024 through a public...

2024-01-16 / The Office presented a number of possibble legislative proposals to support Efficient competition The Office for the Protection of Competition drafted a proposal of possible legislative changes. The purpose of such amendments is to increase the effectiveness of the Office, in particular the detection...

2023-11-23 / Economic Experts Shared Their Knowledge with the Employees of the Office for the Protection of Competition Last week, the Office for the Protection of Competition (hereinafter referred to as "the Office") organised a lecture on competition economics within the framework of improving the qualification and...

2023-11-20 / BEKO Fined 13 Million for Obstructing the On-Site Inspection The Office for the Protection of Competition (hereinafter referred to as "the Office") imposed a fine of CZK 13,651,000 on BEKO SPÓLKA AKCYJNA for an infringement of the obligation to provide cooperation...

If you want to recieve news by email please give us your adress and choose topic.

Email:
Significant Market Power
Public Procurement
State Aid
Competition
cs | en
+420 542 167 111 · posta@uohs.cz