Commission on Protection of Competition conducted inspections in the offices of retailers of construction machinery

On 28 May 2024, the Commission on Protection of Competition carried out a dawn raid in the offices of traders of construction machinery and equipment.

The inspection is carried out after the initiation of a proceedings to establish a possible infringement committed by „O-Rent“ EOOD and „Zemekop“ EOOD, consisting in prohibited agreements and/or concerted practices for manipulation of public procurement procedures within the meaning of Article 15 of the LPC and Article 101 of the TFEU. By Order of the CPC № 534 of 23 May 2024, „Ingconsult“ EOOD was constituted as a defendant party in the proceedings. Upon examination of the criteria under the annual enforcement priorities of the CPC, the Commission concluded that there are reasonable indications for the existence of a cartel between the companies as participants in public procurement procedures for the supply and/or other activities related to specialised machinery.

The inspection was carried out by experts  of the CPC, with the assistance of the Ministry of the Interior, after obtaining judicial authorization from the Administrative Court - Sofia District.

During the inspection, copies of documents stored on paper were seized and digital copies of documents and correspondence will be analyzed in detail using specialized forensic software. If the Commission finds sufficient evidence for allegations of infringement, the respondents will have the opportunity to exercise their rights of defense through access to the materials from the file and evidence collected, the right to present their objections and the right to be heard by the CPC, if requested. Once the procedural steps are completed, the CPC will issue a final decision on the proceedings.

Pursuant to Article 101 of the Law on protection of Competition, the CPC may grand an immunity from fines to the first undertaking in line that discloses its participation in the cartel and provides evidence on the basis of which the Commission can prove the infringement. The CPC may reduce the fine for the second and subsequent undertakings in line if they provide evidence which is essential to prove the infringement. The conditions for immunity or reduction are part of the Policy of the Commission for protection of competition on immunity from fines or reduction of fines in case of participation of an undertaking in a secret cartel, published at https://www.cpc.bg/prohibited-agreements#tab-2