Germany’s competition authority, the Bundeskartellamt, has imposed a fine (6 November) of €2.79 million on Strabag AG for collusive tendering practices related to a 2017 works contract for the renovation of Cologne’s Zoobrücke bridge.
Strabag and Kemna Bau Andreae GmbH & Co. KG conspired to ensure a Strabag-led consortium would secure the project, with Kemna submitting a deliberately non-competitive “cover quote” in exchange for a compensation payment.
Bundeskartellamt President Andreas Mundt condemned the anti-competitive behaviour: “Tender procedures aim to secure quality at the best price. When companies engage in cartel agreements, it undermines these principles, distorting both quality-based and price competition. The economic damage from bid-rigging in public construction is estimated in billions of euros annually.”
Bid-rigging violates Section 298 of the German Criminal Code (StGB) and is prosecutable under competition law, with the Bundeskartellamt pursuing corporate accountability and the public prosecutor addressing individual responsibility. A September 2021 dawn raid, conducted in collaboration with the Cologne Criminal Investigation Department and the Public Prosecutor’s Office, gathered evidence leading to the fine against Strabag.
The investigation was prompted by an anonymous whistleblower tip. Kemna Bau, which cooperated fully and provided critical evidence, avoided prosecution under the Bundeskartellamt’s leniency programme. Strabag also cooperated and settled with the authority, making the fine final.
A case summary will be published soon on the Bundeskartellamt’s website, as required by Section 53(5) of the German Competition Act.
