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Group of cases regarding bid rigging in plumbing sector closed with a personal fine to a member of management in plumbing company

26. August 2019

A former member of management in the now dissolved company, Sanoterm Danmark A/S, has entered into a settlement agreement with the Danish State Prosecutor for Serious Economic and International Crime for infringing section 6 of the Danish Competition Act.

The infringement concerned one case of bid rigging in 2013 in which the now dissolved company, Sanoterm Danmark A/S, and the member of management exchanged information on prices and other terms with one of the company’s competitors in connection with a bid on plumbing work on a project regarding a new cruise ship terminal.

Accordingly, the member of management has now accepted to pay a personal fine of DKK 100.000 (€ 13.333).

The Danish Competition and Consumer Authority started an investigation into the case on the basis of a tip back in 2015 and later on the Danish Competition Council decided to hand over the case to the State Prosecutor for Serious Economic and International Crime to undergo criminal proceedings.

The personal fine to the member of management to the now dissolved company, Sanoterm Danmark A/S, closes the last case in a group of cases in the plumbing sector that ended up with fines of in total DKK 1.750.000 (€ 233.333). The cases have been settled with the following result:

  • Fredensborg VVS Teknik A/S: DKK 1.000.000 (€ 133.333).
    A member of management: DKK 25.000 (€ 3.333)

  • Christoffersen & Knudsen A/S: DKK 575.000 (€ 76.667)
    A member of management: DKK 25.000 (€ 3.333)

  • Sanoterm Danmark A/S: Company dissolved – no fine
    A member of management: DKK 25.000 (€ 3.333)
    A member of management: DKK 100.000 (€ 13.333)

It should be noted, that the personal fines of DKK 25.000 concern infringements conducted before the increased fine level in the Danish Competition Act that entered into force in March 2013. The personal fine of DKK 100.000 concerns an infringement conducted after this date.