Belgian watchdog tackles bid rigging

Bid rigging involves competing bidders colluding to decide in advance who will win a tender, rather than competing with each other. It can take various forms, such as price fixing, suppression or withdrawal of bids, rotation systems, and/or market-sharing agreements. The result is that competition is eliminated and costs to contracting authorities are increased.

The BCA signaled its intent to prioritize detecting and preventing bid rigging in its Priorities Notes of 2023 and 2024 and its plans to update its 2017 guidelines on collusion in public procurement. This was a harbinger of the intensified crackdown on bid rigging that followed. 

The BCA’s crackdown sends a clear message. Companies should avoid any hint of bid rigging, especially as it is the only infringement under the Belgian competition rules that is also subject to criminal sanctions. 

In its decision of 8 July 2024 in the fire protection case, the BCA highlights its tough stance against these serious infringements. The BCA fined the Sicli Group EUR 2.2 million for manipulating public procurement procedures between 2009 and 2016, mainly for the sale, hire and/or maintenance of fire extinguishers and hose reels. The Ansul/Somati Fie Group received immunity under the BCA’s leniency program after reporting the cartel and offering to compensate the victims. The companies involved allocated public procurement contracts to each other to retain their historical customers whereby they agreed on which company would refrain from bidding or which company would submit an artificial higher bid than its competitor. The companies involved accepted a settlement. They admitted guilt in return for a decreased fine.

This decision followed another decision of 3 July 2024, in which the BCA fined Securitas, G4S and Seris over EUR 47 million for bid rigging, price fixing and no-poaching agreements from 2008 and 2020 in the private security sector.  The BCA underlined that these "severe and longstanding cartel practices" constitute "the most serious breaches of the competition rules. Prosecuting bid rigging practices is a top priority for the BCA.” In this case, the companies involved also acknowledged their participation in the infringement and accepted a settlement proposed by the BCA.  Securitas received full immunity, while G4S and Seris had their fines reduced to EUR 35.9 million and EUR 11.2 million respectively after applying for leniency as well. 

The BCA’s crackdown sends a clear message. Companies should avoid any hint of bid rigging, especially as it is the only infringement under the Belgian competition rules that is also subject to criminal sanctions (apart from administrative fines of up to 10% of the worldwide group turnover).  Under Article 314 of the Belgian Criminal Code, bid rigging is punishable by imprisonment of between fifteen days and six months and a fine of between EUR 100 and EUR 3,000 (this fine has to be multiplied by eight).