Details of the Belgian Competition Authority decision

On 8 July 2024, the Belgian Competition Authority (BCA) announced it had adopted a decision sanctioning bid-rigging in the fire protection sector, as reported by CMS Law-Now.

Bid-rigging involves the manipulation of a public procurement procedure and is considered an illegal agreement under Article 101.1 of the Treaty on the Functioning of the EU and the Belgian Code of Economic Law.

The investigation targeted ANSUL, SomatiFIE, and Sicli, revealing that between 2009 and 2016, these firms allocated public procurement contracts among themselves.

This was done by either refraining from submitting offers or presenting cover bids for the sale, rental, and maintenance of fire extinguishers and reels, violating both European and Belgian competition laws.

Outcomes and penalties

The investigation commenced following a leniency application by ANSUL and SomatiFIE, who were granted full immunity for being the first to report the cartel.

The BCA also considered the group’s commitment to compensating affected clients in its decision.

Sicli’s initial fine of EUR 2.2 million was reduced by 50% due to its cooperation.

This decision, adopted through a settlement procedure, is final and not subject to appeal, allowing victims to seek damages.

Six individuals involved in the cartel applied for and were granted immunity from prosecution by the BCA, which has the authority to impose fines on natural persons participating in cartels.

BCA’s ongoing efforts and priorities

Sanctioning collusion in public procurement has long been a priority for the BCA.

This policy is a key part of their notice on priorities for 2024.

Public procurement processes in Belgium, which have an annual value of over EUR 70 billion, are designed to ensure freedom of access, equal treatment, and transparency.

In 2017, the BCA published a guide for public procurement buyers, offering practical tips to reduce the risk of collusion and detect bid-rigging.

The authority has also announced a focus on new detection tools, in cooperation with other competition authorities, and will prioritize certain bid-rigging cases.

Recent decisions in context

The decision concerning the fire protection sector is the second bid-rigging case the BCA has addressed in July 2024, following a similar decision in the private security sector.

This consistent action underscores the BCA’s commitment to maintaining fair competition and transparency in public procurement processes.