Bundeskartellamt welcomes association guidelines for setting up supplier consortia

The Bundeskartellamt has assisted the German Ready-Mixed Concrete Association (Bundesverband der Deutschen Transportbetonindustrie e.V.) in drafting guidelines to check whether bidding syndicates and supplier consortia in the ready-mix concrete industry are admissible under competition law. The association published its guidelines today.

Andreas Mundt, President of the Bundeskartellamt: “Cooperations between companies which are necessary and reasonable are naturally allowed under competition law. Under certain conditions direct competitors also have the possibility to form syndicates. We expressly welcome it when associations offer their members antitrust advice. Companies can of course always contact the Bundeskartellamt if there is still doubt.”

Bidding syndicates and supplier consortia play a considerable role in the award of large works contracts. The guidelines of the German Ready-Mixed Concrete Association were drafted in close cooperation with the Bundeskartellamt. They explain the criteria which apply to syndicates under competition law. What matters most in the assessment of such cooperations is whether an offer could only be submitted after a syndicate was formed and whether the cooperation is economically appropriate and commercially reasonable. This must be objectively and reasonably justified. The guidelines also address questions on the extent of admissible exchange of information with the potential partner and include a collection of case examples.

The Bundeskartellamt already dealt with the limits of admissible supplier consortia in its sector inquiries on “rolled asphalt”(2012, available in German only) and “cement and ready-mix concrete” (2017, available in German only). Last year the German asphalt association (Deutscher Asphaltverband, DAV) also drafted guidelines for setting up bidding syndicates and supplier consortia in cooperation with the Bundeskartellamt. (For more information on the DAV guidelines see Bundeskartellamt press release of 10 December 2018).