Road builders fined for collusive tendering

The Bundeskartellamt has imposed fines amounting to a total of almost one million euros on the four Dortmund-based construction companies Höhler GmbH & Co. KG, Möckel Bauunternehmung GmbH & Co. KG, Möllmann Straßen- und Ingenieurbau GmbH & Co. KG and Stra-La Bau GmbH for collusive
tendering with regard to road works. The proceeding was based on the leniency application by another company involved in the collusion, Gehrken Straßen- und Tiefbau GmbH & Co. KG, which in application of the statutory provisions was granted immunity from fines.

Andreas Mundt, President of the Bundeskartellamt: “The collusion affected several hundreds of tender procedures relative to road works by the City of Dortmund in the years between 2012 and 2018 with a total contract volume of approximately 18 million euros. The road builders helped each other to obtain contracts by agreeing during personal meetings on whose turn it should be to make the best offer and consequently win the tender. The other companies would place higher bids.”

Depending on the specific tender situation, the companies involved in the collusion met in person every few weeks or months. The cover name often used for these meetings was “meeting in Africa” because of one cartel member’s passion for travel. The cartel members checked the current invitations to
tender by the City of Dortmund and in a first step discussed who would be interested in which contract. The company representatives then normally already agreed during the meetings on who would make the best offer in the course of the respective tender procedures. The tenders were distributed among
the companies according to the type and scope of the road works to be performed, the location of the construction site and the price calculated in advance. During their in-person meetings, the companies decided on the best price to offer if individual contracts were to be awarded or, if framework contracts were to be awarded, on the best surcharges/reductions to offer on quotations issued by the City of Dortmund. All other cartel members placed bids above the agreed best price.

Not only the leniency recipient, but also the other four companies cooperated with the Bundeskartellamt in the clarification of the matter. A settlement agreement was reached with all companies. The orders imposing the fines are now final.

A case summary (in German) in accordance with Section 53(5) of the German Competition Act (GWB) relating to this proceeding is available here.