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CARTELS: AMO initiated the administrative proceedings for the suspicion of collusion in public tender within the Operational Programme Competitiveness and Economic Growth

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On April 08, 2015 the Antimonopoly Office of the Slovak Republic, Division of Cartels initiated ex officio the administrative proceedings in the matter of possible agreements restricting competition concluded between two undertakings in building industry.
 
The Office acquired documents and information based on which it had reasonable suspicion that two undertakings in building industry coordinated their bidding procedure in the tender for reconstruction of a facility in order to increase its energy efficiency in the total presumed value of EUR 342 040,62. This project was carried out in Trenčín region within the Operational Programme Competitiveness and Economic Growth and co-financed from the resources of tender announcer.
 
Since this agreement represents horizontal agreement between direct competitors, which is considered as the most serious infringement of competition rules, it means hard-core cartel, cartel participants may be fined up to 10 % of their turnover for the preceding closed accounting period.
 
The Office also states that a cartel participant has an option to fully avoid a fine if he was the first to provide, on its own initiative, decisive evidence to prove a violation of the prohibited agreement or was the first to provide, on its own initiative, information and evidence being decisive to perform an inspection or he may reach its reducing up to 50%. Detailed conditions of non-imposing or reducing a fine are summarized in the document “Leniency program” (Program zhovievavosti (tzv. leniency program).

The fact that the Office initiated the administrative proceedings does not imply that the entity concerned has infringed the competition rules, nor does it prejudge the conclusions which the Office may reach in its decision.