The Austrian Cartel Court has imposed (5 December) a €43,000 fine on Riegerbau GmbH for its involvement in illegal price-fixing and market allocation practices within the facade construction sector. The decision, following a request by the Federal Competition Authority (BWB), is now legally binding.
Details of the Case
The cartel involved systematic horizontal agreements and exchanges of competitively sensitive information between Riegerbau and other companies during 2017. These actions targeted facade construction contracts in Vienna’s procurement processes, breaching Austrian and EU competition laws.
The case was built on evidence obtained from telephone surveillance conducted by the Vienna Criminal Police Office in 2017. The Federal Competition Authority, working closely with law enforcement, conducted raids on multiple companies in 2019 after receiving recordings of the calls from the Public Prosecutor’s Office for Economic Affairs and Corruption (WKStA).
Limited Cooperation and Fine Calculation
Unlike other implicated companies, Riegerbau offered limited cooperation during the investigation, which was reflected in the severity of the fine. The court also considered the company’s economic capacity when setting the penalty amount.
Despite Riegerbau’s acknowledgment of wrongdoing during the proceedings, the company’s lesser degree of collaboration with the authorities compared to other cartel participants influenced the final fine.
Broader Context and Previous Fines
This decision is part of a broader crackdown on a facade construction cartel that has resulted in fines totaling €160,000. Previous penalties include:
- NFS Bau GmbH: €54,000 (November 2022)
- Simsek Bau GmbH: €63,000 (January 2024)
- Riegerbau GmbH: €43,000
The case marks a milestone for the Federal Competition Authority, as it is the first investigation under new legislation allowing authorities to use recorded telephone conversations as evidence.
Authority Statement
The BWB praised the successful cooperation with the Vienna Criminal Police Office in uncovering and prosecuting this cartel. The investigation highlights the importance of robust inter-agency collaboration in enforcing competition laws and protecting market integrity.
