Commission on Protection of Competition accuses 7 companies of cartel in public procurement for supply of hospital food and construction machinery.

The Commission on Protection of Competition has accused seven companies of participating in cartel schemes in public procurement procedures for the supply of hospital food, as well as machinery and equipment for mining and construction.

According to the regulator, sudden inspections were carried out in the companies’ offices under court authorisation and with the assistance of the Ministry of Interior.

The investigations concern potential manipulation of public tenders through coordinated pricing and commercial conditions. The first case was initiated following a complaint by MP Vasil Pandov regarding a suspected cartel in the hospital food supply market in Sofia. Findings suggest that three companies involved in the tenders exchanged sensitive commercial information via a third-party consultant.

The second proceeding related to the supply of machinery and equipment. Evidence gathered suggests that the three companies coordinated their conduct in participating in the tenders, including by agreeing on price and commercial parameters. The case also involved a request for exemption or reduction of a sanction under the leniency programme for participation in a secret cartel.

The companies have a 30-day deadline to file objections and to be heard before the Commission on Protection of Competition, after which the authority will issue final decisions.

The potential fines may reach up to 10% of turnover for the previous financial year. Possible consequences also include restrictions on the right to participate in public procurement procedures.