CPC Investigates Cartel in Public Procurement Following Alert from Ministry of Regional Development

The Commission for Protection of Competition (CPC) has opened proceedings over a possible prohibited agreement and/or concerted practice in public procurement procedures financed under the Operational Programme “Regions in Growth” 2021–2027, following an alert from the Ministry of Regional Development and Public Works. The investigation concerns suspicions of coordinated actions between participants in tender procedures which could constitute a breach of both national and European competition law.

This is the third cartel-related case opened by the anti-monopoly authority since the beginning of the year. Previously, the CPC launched two other investigations – one following a tip-off alleging a cartel in hospital food supply contracts, submitted by a Member of Parliament, and another concerning concerted practices in public procurement for the supply, installation and maintenance of IT equipment, prompted by the General Directorate for Combating Organised Crime (GDBOP).

The current proceedings relate to direct award procedures funded by European resources, involving the organisation of specialised training, exchange of experience and best practice aimed at enhancing the capacity of municipal officials across different regions of the country.

As part of its preliminary assessment, the Commission for Protection of Competition analysed the participation of a number of companies in multiple public procurement procedures with similar contracting authorities, subject matter and participants. Procedures in the municipalities of Velingrad, Razgrad, Sevlievo, Gorna Oryahovitsa and Elena were examined.

According to the findings, there are a number of suspicious indicators suggesting the possible existence of a cartel in the form of bid rigging, through coordinated conduct among the companies under scrutiny and the predetermination of the contracting authority’s choice of the undertaking to be selected as contractor. The analysis shows identical spelling and grammatical errors, use of identical wording and style, as well as matching textual structures not present in the templates provided by the contracting authorities. Technical data also indicate that participants submitted their bids from the same IP address used on the electronic public procurement platform.

The investigation is ongoing, and the Commission will determine whether the collected indicators constitute evidence of a cartel agreement or a concerted practice between undertakings.