The Bundeskartellamt has imposed a fine of 2.79 million euros on Strabag AG, Cologne, for collusive behaviour in a tender procedure (bid rigging). The collusive behaviour related to a works contract awarded in early 2017 for renovating Cologne’s Zoobrücke bridge. Staff at Strabag and Kemna Bau Andreae GmbH & Co. KG, Pinneberg, had agreed that Kemna would submit a cover quote in the tender procedure to ensure that a bidding consortium involving Strabag would be awarded the contract. Kemna received a compensation payment in return.

Andreas Mundt, President of the Bundeskartellamt: “Tender procedures always aim at obtaining good quality at the most favourable conditions possible. However, if bidders enter into illegal cartel agreements to influence who will win the contract, as happened in the present case, award procedures cannot achieve their aim of ensuring quality-based competition and price competition. For public construction projects alone, the damage caused by bid-rigging agreements is estimated to amount to several billions of euros each year.”

Besides being relevant under competition law, bid rigging is also a punishable offence under Section 298 of the German Criminal Code (StGB). The Bundeskartellamt is the competent authority for prosecuting companies, while the public prosecution office prosecutes the natural persons involved. In the present case, the Bundeskartellamt, in cooperation with the Cologne Criminal Investigation Department and the Cologne Public Prosecutor’s Office, carried out a dawn raid in September 2021 and worked together constructively with the prosecuting authorities throughout the proceeding.

The proceeding was triggered by an anonymous tip-off made via the Bundeskartellamt’s whistleblowing system.

The proceeding against Kemna was discontinued in application of the leniency programme as Kemna had cooperated with the Bundeskartellamt and submitted the evidence which made it possible to prove the offence. Strabag AG also cooperated with the Bundeskartellamt throughout the proceeding and ultimately agreed to a settlement. The order imposing the fine is final.

A case summary in accordance with Section 53(5) of the German Competition Act (GWB) will be published shortly on the Bundeskartellamt’s website.