Public procurement tender for the reconstruction of the inner Bartók Béla street, in connection with the construction of underground line 4
Agreement restricting economic competition
The Gazdasági Versenyhivatal commenced competition supervision proceedings against several undertakings of the construction industry following the arising of suspicion that they had displayed a conduct which restricted economic competition in the offering phase of the public procurement tender published by the Direction Metro Project of BKV Rt. in connection with the preparation of underground line 4 in the first quarter of 2002.
On the trial held on 18 March 2004 the Competition Council of the Gazdasági Versenyhivatal established the following: Strabag Rt. and EGUT Rt. making bids for the tender related to the inner Bartók Béla street in the offering phase of the above-mentioned public procurement tender procedure followed a restrictive business practice i.e. a concerted action which was to restrict competition.
The Competition Council established unlawful concerted action in relation to the bidding process among bidders concerning the public procurement tender published for the rebuilding of Bocskai junction, too, charging Strabag Rt. and RING Kkt.
Contrary to what would have been rational behaviour ensuing from the competition situation, the above-mentioned undertakings had contacted each other directly through fax messages before submitting their bids that were suitable to influence on the market conduct of the competing bidders.
In the view of Competition Council business interest establishing and governing competition presupposes that each bidder of a tender (the competitors), where they observe the provisions of the law, decide their market conduct independently. That is to say, they preclude all direct or indirect connections which, by their object or effect, influence or may influence or are intended to influence the market conduct of competitors. Considering all these aspects the Competition Council found the above-mentioned conduct of Strabag Rt. and EGUT Rt. and RING Kkt. restricting economic competition and hence infringing the Competition Act. Therefore the Competition Council imposed aggregate competition supervision fines of HUF 137 million, 56 million and 52 million (which equal to EUR 537 thousand, 220 thousand and 204 thousand) on Strabag Rt., EGUT Rt. and RING Kkt, respectively.
The Competition Council terminated the competition supervision proceedings against the other undertakings bidding for the tenders published for the road and tram-track reconstruction of Bartók Béla street and Bocskai junction, in the absence of proven violation of law.
March 18, 2004. Budapest