On 8 July 2024, the Belgian Competition Authority (“BCA”) announced it had adopted a decision sanctioning bid-rigging in the fire protection sector. Bid-rigging refers to the manipulation of a public procurement procedure. Such collusion constitutes an illegal agreement between undertakings, which is prohibited under Article 101.1 of the Treaty on the Functioning of the EU and under the Belgian Code of Economic Law.
The undertakings that the BCA investigated were ANSUL, SomatiFIE and Sicli. Between 2009 and 2016, they allocated public procurement contracts among themselves by refraining from submitting offers or by presenting cover bids for the sale, rental and maintenance of fire extinguishers and reels, in breach of both European and Belgian competition law.
The investigation was launched following the leniency application submitted by ANSUL/SomatiFIE. The group benefitted from full immunity, being the first to report the existence of the cartel. Another factor that influenced the BCA’s decision was the group’s commitment to compensating affected clients. Sicli’s initial fine of EUR 2.2 million was ultimately reduced by 50% because of its cooperation. The decision was adopted following a settlement procedure, meaning that the parties may not appeal it and it is final, allowing the victims of this cartel to seek damages.
As the BCA can impose fines upon natural persons that participate in cartels, six individuals applied for and were granted immunity from prosecution.
Sanctioning collusions in public procurement has been an important policy priority for the BCA for many years and it was listed as the number one priority in the BCA’s notice on its priorities for 2024. Indeed, when public authorities wish to order certain services, supplies or works from undertakings, they must comply with the legal framework applying to public procurement. One of the objectives of this strict legal framework is to ensure freedom of access, equal treatment and transparency, thus creating a level playing field for all interested applicants. Public procurements in Belgium have an annual value of more than EUR 70 billion.
In 2017, the BCA published a guide for buyers in charge of public procurement. It provides practical tips to reduce the risks of collusion and to detect bid-riggings.
Furthermore, the BCA announced that it would also focus on new detection tools, in cooperation with other competition authorities, and will prioritise certain bid-rigging cases.
This decision in the fire protection sector is the second one adopted in July 2024 by the BCA relating to bid-riggings following its decision in the private security sector.
Annabelle Lepièce
