In December 2019 the Bundeskartellamt has finalised the fines proceedings against eleven technical building service providers. The authority imposed fines totalling approx. € 110 million for colluding on bids for major contracts. The companies are: Caverion Deutschland GmbH, Munich; DS Elektrotherm GmbH, Landshut; Engie Deutschland GmbH, Cologne; Engie Gebäudetechnik GmbH, Vienna; Ferrostaal Air Technolgy GmbH, Saarwellingen; Karl Lausser, Heizungsbau- und Sanitär GmbH, Rattiszell; Kraftanlagen München GmbH, Munich; Nickel GmbH, Bergisch Gladbach; Sell GmbH, Helmbrechts; Siegle + Epple GmbH & Co. KG, Stuttgart und Stingl GmbH, Munich. The proceeding was initiated in November 2014 following a leniency application.

Andreas Mundt, President of the Bundeskartellamt: “A large number of leading technical building service providers have colluded in some cases over years on bids for the award of major contracts. Often only fictitious bids were submitted to protect other providers. In return for submitting these bogus quotes the companies in many cases received specific services such as subcontracts, compensatory amounts or were offered cover quotes in another tender procedure. In all we have proved anti-competitive practices in 37 different award procedures in the period from 2005 to 2014”.

The leniency application was made in the knowledge of imminent media reports about alleged agreements on the award of technical building services for the black coal-fired power plants in Hamm-Uentrop in Germany and Eemshaven in the Netherlands. In the days following the publication of the reports three other companies expressed their willingness to cooperate with the Bundeskartellamt within the scope of its leniency programme.

The Bundeskartellamt subsequently conducted investigations in close cooperation with the Munich I Public Prosecution Office and the Munich Criminal Investigation Department. In February and March 2015 joint dawn raids were conducted at several companies and private residences. The Public Prosecution Office took over the proceedings against the natural persons who might have been involved in any bid-rigging agreements, the Bundeskartellamt lead the proceedings against the companies.

The practices involve the design and installation of technical equipment for large building complexes such as power plants, industrial installations, shopping centres or office buildings. Technical building services include the following disciplines: “mechanics” (sanitation, heating and air-conditioning), “electricity” (electronics, measurement and control technology) and “fire protection” (e.g. sprinkler systems). The agreements were predominantly in the “mechanics” area. The order volume for each discipline usually amounted to between four and 35 million euros, in one case to around 100 million euros.

In setting the fine the Bundeskartellamt took account of the fact that Caverion Deutschland GmbH, Nickel GmbH, Ferrostaal Air Technology GmbH, Stingl GmbH, Siegle + Epple GmbH & Co. KG and in one case also Engie Deutschland GmbH had cooperated with the authority in uncovering the agreements within the scope of the leniency programme and that the proceedings against these companies as well as DS Elektrotherm GmbH and Engie Gebäudetechnik GmbH could be concluded by settlement. The fines against Caverion Deutschland GmbH, Nickel GmbH, Ferrostaal Air Technology GmbH, Engie Deutschland GmbH, Stingl GmbH, Engie Gebäudetechnik GmbH, DS Elektrotherm GmbH and Siegle + Epple GmbH & Co. KG are already legally binding. Kraftanlagen München GmbH, Karl Lausser, Heizungsbau- und Sanitär GmbH and Sell GmbH have each appealed the decisions to the Düsseldorf Higher Regional Court. In the case of appeal the court will examine the accusation and the actual findings on the facts of the case. On appeal by Karl Lausser, Heizungsbau- und Sanitär GmbH the Düsseldorf Higher Regional Court has closed the proceeding against the company for lapse of time. The Düsseldorf Chief Public Prosecution Office brought an appeal against this decision on which the Federal Court of Justice will decide.

The proceedings of the authority were finalized in December 2019. The information of the public had since been delayed by court proceedings.

Further information about the building projects concerned in the agreements is available in a case summary (in German) on the Bundeskartellamt’s website. The case summary is published in accordance with Section 53(5) of the German Competition Act, GWB.