COMPETITION COUNCIL DISCLOSED AN ANTI-COMPETITIVE AGREEMENT IN PUBLIC PROCUREMENT

On December 5, 2016 the Competition Council found that in 2014 UAB Žagarės inžinerija and UAB Rovaltra (hereinafter – Companies) concluded a collusive bidding agreement while participating in the public procurement for the purchase of machinery organised by UAB Fontas LT, and thus breached the Law on Competition.

Having analysed information provided by the National Paying Agency under the Ministry of Agriculture, on March 26, 2015 the Competition Council opened the investigation. The Competition Council suspected that in 2014 the Companies concluded an anti-competitive agreement while participating in the public procurement for the purchase of a biomass chipper with a manipulator, which was organised by UAB Fontas LT.

The facts established during the investigation, including written correspondence between the Companies, proved that UAB Žagarės inžinerija and UAB Rovaltra entered into bid-rigging and agreed in advance who will submit a winning bid. By concluding an anti-competitive agreement, the Companies restricted competition in the relevant market.

For the anti-competitive agreement, the Competition Council fined UAB Rovaltra 70 400 Eur, and UAB Žagarės inžinerija – 33 400 Eur.