VILNIUS REGIONAL ADMINISTRATIVE COURT: UAB ŽAGARĖS INŽINERIJA AND UAB ROVALTRA RIGGED THEIR BIDS

Vilnius Regional Administrative Court (Court) upheld the Competition Council’s decision of 5 December 2016, according to which UAB Žagarės inžinerija and UAB Rovaltra (Companies) rigged their bids in the public procurement for the purchase of machinery organized by UAB Fontas LT.

The Court noted that during the investigation the Council applied a high standard of proof and collected a sufficient amount of evidence showing the anti-competitive behavior of the Companies. The Court agreed that bid-rigging is one of the most serious breaches of competition law, which causes serious harm to the country’s economy and, thus, should be fined heavily. 

Having analyzed information provided by the National Paying Agency, on 26 March 2015 the Council opened an investigation. The Council suspected that in 2014 the Companies rigged their bids in the public procurement organized by UAB Fontas LT.

The facts established during the investigation, including written correspondence between the Companies, proved that the Companies rigged their bids and agreed in advance on the winning bid. By concluding an anti-competitive agreement, the Companies restricted competition in the relevant market.

The Court upheld the fines which the Council imposed on the Companies: UAB Rovaltra – EUR 70 400,  UAB Žagarės inžinerija – EUR 33 400.

Within one month from the date of its publication, the Court’s decision may be appealed to the Supreme Administrative Court of Lithuania.