This week the Bundeskartellamt invited public prosecutors and representatives from the competition authorities of the Länder and the Bundeskartellamt to exchange practical experiences on the prosecution of bid-rigging agreements. The prosecution of bid-rigging agreements involves a parallel competence of competition authorities and public prosecutors' offices. Illegal agreements between competitors on the bids submitted in tender processes are punished as an illegal cartel, and in many cases substantial fines are imposed on the participating companies. However, under § 298 of the German Criminal code this conduct also constitutes a criminal offence. The proceedings against the persons involved therefore fall within the competence of the public prosecutor's office. The exchange of experience helped to strengthen the co-operation between public prosecutors and competition authorities in these parallel proceedings.

Andreas Mundt, President of the Bundeskartellamt, stated: "In the last few years the prosecution of agreements relating to public tenders has been intensified. Affected by the agreeements were industrial sectors as diverse as road salt and fire engines. Very often the public sector and thus tax payers are directly affected by this conduct. We intend to expand the co-operation between competition authorities and public prosecutors to be able to conduct these proceedings even more effectively."

Yesterday's discussion focused on several legal and practical issues which generally occur during the course of such proceedings and which have to be coordinated by the authorities involved, as for example the organisation of joint searches. Furthermore, the participants felt that permanent contact persons and specialised units at the authorities involved could considerably facilitate the joint prosecution of bid-rigging agreements.

This dialogue is to be continued over the coming months.