Cartel prosecutors and public prosecutors exchange experiences in Bonn Increased prosecution of bid-rigging agreements

15.04.2013

On 10 April 2013 the Bundeskartellamt invited representatives from competition authorities and public prosecutors from across the country to Bonn to exchange their experiences on the prosecution of illegal agreements relating to public and private tenders. The dialogue within the "Netzwerk Submissionsabsprachen" (network on bid-rigging agreements) which was initiated last year (cf. Bundeskartellamt press release of 10 February 2012) serves to increase the quota of uncovered violations.

Andreas Mundt, President of the Bundeskartellamt: "The prosecution of bid-rigging agreements, so-called fraudulent tenders, involves a parallel competence of competition authorities and public prosecutors. By joining our forces we can make the prosecution of these offences much more efficient and forceful."

The discussion focused on the coordination and reciprocal support of prosecution activities. A particular issue of discussion this year was how the uncovering of bid-rigging agreements with the help of leniency applicants can be rewarded in criminal proceedings. Key witnesses and applications for leniency are instrumental in the prosecution of illegal agreements because cartel members are usually very conspirative; in most cases only voluntary disclosure by a cartel member can break up a cartel.

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 Section 298 of the German Criminal Code (Strafgesetzbuch, StGB) this conduct also constitutes a criminal offence. The proceedings against the persons involved therefore fall within the competence of the public prosecutor's office. Logo: Offene Märkte | Fairer Wettbewerb

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