First fine imposed in comprehensive demolition cartel proceedings
A person from the Danish demolition enterprise Midtsjællands Nedrivning has been ordered by the Court of Holbæk to pay a fine of DKK 100,000 for having participated in a bid-rigging cartel in the demolition industry. The judgment is the first in a number of cases concerning a demolition cartel in which many companies and their executive officers have been charged with violation of competition law.
By assistant attorney Emil Petri
In 2013, the person in question received, on behalf of Midtsjællands Nedrivning, a competing business' bid for social housing demolition work on the island of Amager at Copenhagen. Subsequently, Midtsjællands Nedrivning submitted a bid for the very same demolition work.
According to the Court it had been proved that the exchange of the bid must be deemed to constitute unlawful bid rigging, and that it constituted cartel violation which had as its object to restrict competition. However, since it was an isolated occurrence where the charged person could not be deemed to have obtained a financial gain, the Court found, based on an overall assessment, that it was not an aggravating cartel agreement. The person in question was therefore not sentenced to imprisonment.
A total of six enterprises have been charged with bid rigging in connection with demolition assignments in the period from May 2011 to October 2013. Judgment is expected in the other proceedings over the next months.
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