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• Romania: Fines imposed on Bid Rigging Cartel in Natural Gas Pipelines SectorOn 17 October 2012, the Romanian Competition Authority (RCC) found that four undertakings had taken part in bid rigging in the framework of two public procurement procedures organised by Transgaz. It was established that Condmag and Inspet rigged their bids in the tender for the “Butimanu-Brazi natural gas connection for the gas-supply of Brazi cogeneration power plant”, while Moldocor and T.M.U.C.B. participated with rigged bids in the “Giurgiu Ruse 20’’ gas transport pipeline tender procedure. Based on its findings, the RCC sanctioned the undertakings concerned with fines totalling € 5 600 000.

Between 2009-2011, Transgaz, the Romanian state owned operator organized public procurement procedures in order to allocate contracts on the market for the construction, repair and maintenance of natural gas pipelines. In Romania, Transgaz developed and rehabilitated the national gas transmission system benefitting from an integrated management system. Its main activities regard the gas transmission, international transit, natural gas dispatching as well as research and development. Condmag, Inspet, Moldocor and T.M.U.C.B. are active in the sector for construction of utility projects.

In 2011, the RCC opened an ex - officio investigation with respect to the above mentioned practices based on an alleged infringement of Article 101 TFEU and Article 5 of the amended Competition Law no.21/1996. During the investigation procedure, several inspections were carried out on 30 September and on 2 November 2011. The evidence collected during those inspections showed that the parties concerned exchanged sensitive information and coordinated their conduct on the market.

These practices were found by the RCC to have affected competition during the two public procurement procedures mentioned above and to have diminished the uncertainty regarding the competitive future behaviour of the undertakings concerned. It was established that those undertakings behaved with the common intention to increase the chances of winning, to the detriment of the other competitors.

The RCC concluded that Condmag, Inspet, Moldocor and T.M.U.C.B. rigged their bids at the two public procurement procedures, thereby taking part in horizontal cartel agreements that distort competition by object. In line with the consistent application of EU law, bid rigging which has as object the restriction of competition is considered hard core restrictions.

See press release (in Romanian)