Bulgaria’s Commission for the Protection of Competition (CPC) has accused seven companies in two separate cartel investigations linked to public procurement tenders for hospital food supplies and mining and construction equipment.
The authority said it carried out unannounced inspections at the companies’ offices in both cases, acting under warrants issued by the Sofia District Administrative Court and with assistance from the Interior Ministry’s specialized police unit.
The first investigation concerns alleged bid-rigging in public tenders for food supplies to medical institutions in Sofia. The proceedings were opened following a report filed by member of parliament Vasil Pandov. According to the CPC, evidence gathered so far indicates that three companies exchanged commercially sensitive information through a third-party consultant.
The second case relates to tenders for the supply of machinery and equipment used in the mining and construction sectors. The competition authority said preliminary evidence suggests that three companies coordinated their participation in procurement procedures, including price offers and other commercial terms.
The CPC described public procurement manipulation as one of the most serious forms of cartel conduct, involving prohibited agreements or coordinated practices between competitors aimed at fixing prices, allocating markets or rigging tenders. Such practices can result in significant losses of public funds, the authority said.
In the mining and construction equipment investigation, one company has applied for reduced or full immunity from sanctions under the CPC’s leniency programme. The authority said the programme, promoted across the European Union, is designed to improve the detection of cartels, which are often difficult and time-consuming to uncover.
The companies involved in both proceedings have 30 days to submit written objections and request hearings before the CPC. Final decisions will be issued afterward.
Under Bulgarian competition law, companies found guilty of cartel conduct can face fines of up to 10% of their turnover in the previous financial year and may also be barred from participating in public procurement procedures.
Source: https://www.cpc.bg/news-501
