Belgium's competition watchdog has condemned three large players in the fire protection sector for rigging bids on public contracts.
The Belgian Competition Authority (BCA) has determined that fire protection companies Ansul, Somati Fie and Sicli were breaching competition rules for more than seven years, as they manipulated the public procurement process for contracts involving the sale, hire and/or maintenance of fire extinguishers and hose reels.
Between 2009 and 2016 the Ansul/Somati Fie group and Sicli group formed a cartel, dividing up new public contracts among themselves to retain their historic customers.
They did this by refraining to bid on certain contracts or submitting 'cover' bids that were intentionally priced higher to be less attractive than another tender.
In its decision, the BCA found that the practices in question distorted competition in the provision of fire protection services in Belgium, and infringed Belgian and European competition rules.
'Particularly regrettable' to target contracts involving public safety
Prosecutor General of the BCA, Damien Gerard, said the bid rigging was "particularly regrettable" given the essential nature of the products in question for ensuring public safety, the victims of the cartel (including schools, municipalities, assistance centres, social housing and public transport companies), as well as how long the practices went on.
"What is positive is that the companies involved have recognised the seriousness of the facts and the Ansul/Somati Fie group has taken the initiative of proposing a system of compensation for the victims," he said.
The companies acknowledged their participation in the infringement and accepted the terms of a settlement proposed by the BCA’s investigation and prosecution service.
The BCA handed down a fine of €2.2 million to the Sicli group, but the group was granted a reduction of 50% due to its co-operation with the investigation.
Meanwhile, the Ansul/Somati Fie group was granted immunity from fines for being the first to report the matter to the BCA under the leniency programme. In its decision, the BCA also took into account the Ansul/Somatie Fie group's undertaking to compensate customers who were victims of the infringement.
Six individuals applied for and were granted immunity from prosecution in the case.
The BCA said that any companies wishing to report their knowledge of or participation in a cartel, and potentially obtain immunity from fines or a reduction in the penalty incurred, are invited to contact the BCA prosecutor general.
