Association of passenger carriers pays a fine of DKK 400,000 for bid rigging
The association of undertakings Økonomisk Forening for Persontransport has accepted a fine of DKK 400,000 (app € 53,643) for coordinating bids between its members.
The association of undertakings Økonomisk Forening for Persontransport (“ØFP”, in English “Economic Association of Passenger Carriers”) has paid a fine of DKK 400,000 (app € 53,643) for coordinating its members’ bids on public procurements where ØFP placed a bid. The size of the fine reflects among other things the duration and gravity of the infringement, as well as the association's turnover.
ØFP is an association of 24 independent passenger carriers in the region Midtjylland in Denmark. The infringement related to tenders concerning for example the transportation of disabled people and patients.
The violation of the Danish Competition Act took place in the period from October 2013 to November 2016. ØFP is now under voluntary liquidation.
The association ØFP is not authorized to provide passenger transportation itself, but ØFP made bids on behalf of the members of the association. Within the frame of ØFP, its members discussed prices and coordinated which public procurements ØFP should make bids on. At the same time, ØFP’s by-laws prohibited its members from bidding on the same procurements as ØFP. The result was a limitation of the competition between the members of the association.
The case started when the Danish Competition and Consumer Authority received a complaint from the traffic company Midttrafik. In February 2018, the Danish Competition Council found that ØFP had violated the Danish Competition Act. Moreover, the Danish Competition Council decided to hand the case over to the State Prosecutor for Serious Economic and International Crime in order to for the State Prosecutor to initiate criminal proceedings.
For further information
Contact head of communication at The Danish Competition and Consumer Authority, Hanne Arentoft, on telephone +45 41 71 50 98.
- Read the decision here (Danish)
- Read the Danish Competition Councils ruling from 2018 (Danish)
- Read the guidance regarding information activities in associations of undertakings (Danish)