Builders’ cartel found in house warming in Saldu / Article

The KP received initial information about the possible violation of competition law from the Central Finance and Contracts Agency. Taking into account the evidence obtained during the investigation of the case, KP established that SIA “Gate L” and SIA “Aksīte” agreed on the conditions of participation in the procurement of apartment owners’ associations of Saldus city and Saldus region, reaching a mutual agreement in 2017 for three houses on Nākotnes Street and 2021. -2022. in 2010 for the distribution of two house warming projects on Veidenbaum Street.

The construction works were carried out with the funds of the structural funds of the European Union.

KP established that the two companies mutually divided the insulation of two houses on Veidenbaum street, including exchanging commercially sensitive information. At the same time, the KP established that in the procurement of house insulation in Nākotne Street, the two businessmen formed an association, but did not carry out work in an equal amount in each object, as the contract stipulated, but each performed work in a different object. SIA “GATE L” performed the works at the facility on Nākotnes Street 7, while SIA “Aksīte” performed all the works on Nākotnes Street 1A and Nākotnes Street 1B.

Thus, the association was created to reduce competition in specific procurements and to exchange commercially sensitive information under the guise of the association.

Fines were applied to the companies involved in the CC violation, which were calculated as a percentage of the company’s net turnover of the previous financial year.

Both parties to the case received a 10% fine reduction as a result of the settlement.

SIA “Gate L” was fined in the amount of 53,506 euros, and SIA “Aksīte” – in the amount of 54,965 euros.

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