News
Construction cartel ends in withdrawal of charges
Contractor Julius Nielsen & Søn has seen the charges brought against it for its participation in the complex of cases regarding the Greater Copenhagen building cartels withdrawn. The complex of cases is thus closed. In total, 25 companies and 21 senior executives have paid fines totalling DKK 31 million in the cases.
FACTS: LENIENCY
• A cartel represents a serious economic crime. Competing companies agree to restrict competition among themselves.
• The agreements may have different characteristics, for example involving bid rigging, price coordination, sharing of markets or restriction of production.
• Cartels are highly detrimental to customers and to the general economy. Studies show that, on average, cartels overcharge by 10-50 percent.
• Companies can be punished with fines. Usually, the fine will not exceed 10 percent of the turnover of the group of which the company is a part.
• Individuals, including the company’s management and senior staff, are punishable by fines and imprisonment of up to six years.
• It is possible to avoid punishment. Among other things, this requires a company or a person to be the first cartel member to contact the authorities.
FACTS: LENIENCY
• Leniency makes it possible to completely avoid fines or imprisonment for participation in a cartel, if you are the first company or person to contact the authorities with information about the cartel and you satisfy a number of conditions, including cooperating with the authorities in the investigation of the case.
• Even if a company is not the first to contact the authorities, it is still possible to get reduced penalties, provided the company offers information which can help the investigation of a case.
• An application for leniency from a company automatically includes the company’s employees.