Wednesday, 30 August 2023

Decision 828/2023

Decision on the ex officio investigation conducted by the HCC’s Directorate-General for Competition (DGC) to determine whether the conditions for application of the provisions of Article 1 of L. 3959/2011 on the “Protection of Free Competition” (Greek Competition Act), as in force, and Article 101 of the Treaty on the Functioning of the European Union (TFEU) are met, in the context of the public tender launched by the National Central Health Procurement Authority (EKAPY) under the contract notice “Call for tenders for the urgent procurement of medical products for SARS-CoV-2 rapid antigen tests (rapid tests), with the most economically advantageous tender, solely on the basis of the price for the provision of the tendered products, being the award criterion and a total estimated value of 28,549,800.00 euros”(ESIDIS Registry No 145316), published on the 30rd of November 2021, regarding potential anticompetitive practices in the context of a horizontal or vertical agreement.

Decision 828/2023

File (PDF) Decision 828/2023
Date of Issuance of Decision August 30th, 2023
Issue Number of Government Gazette
Relevant Market The case concerned the procurement of medical products (rapid tests) in the context of a relevant public tender, however,the precise market definition in this case may be left open.
Subject of the Decision Decision on the ex officio investigation into the public tender launched by the National Central Health Procurement Authority (EKAPY) under the contract notice “Call for tenders for the urgent procurement of medical products for SARS-CoV-2 rapid antigen tests (rapid tests), with the most economically advantageous tender, solely on the basis of the price for the provision of the tendered products, being the award criterion and a total estimated value of 28,549,800.00 euros”(ESIDIS Registry No 145316), published on the 30rd of November 2021, regarding possible anticompetitive practices in the context of a horizontal according to the Statement of Objections of the Commissioner-Rapporteur I. Stefatos under ref. no. 6297/4.8.2023, in the context of the Settlement Procedure, pursuant to HCC Decision 790/2022 and Article 29a of Law 3959/2011. 
Legal Framework

Articles 1, 29of Law 3959/2011 and 101 TFEU

Operative part of the Decision

The Plenary of the HCC, by virtue of para. 35 of its Decision no. 790/2020, accepted the Settlement Proposals submitted by the following undertakings, according to the reasoning of the Statement of Objections, and decided as follows:

Finds that the companies “VIOLAK INTERNATIONAL S.A.”, “INEX MEDICAL S.A.” and “BBD NIK. LAINIOTIS S.A.”, infringed Articles 1 of Law 3959/2011 and 101 TFEU due to their participation in prohibited horizontal agreements through the practices outlined in the Statement of Objections in the context of the Settlement Procedure.

Orders the above undertakings to cease, if they have not already done so, and refrain in the future from the infringements of Articles 1 of Law 3959/2011 and 101 TFEU found.

Imposes a fine amounting to €98,234.50 on “VIOLAK INTERNATIONAL S.A.”, a fine amounting to €149,316.44 on “INEX MEDICAL S.A.” and a fine amounting to €126,392.44 on “BBD NIK. LAINIOTIS S.A.”. The total amount of the fines imposed on the four (4) settling parties is €373,943.38 for committing the established infringements of Articles 1 of Law 3959/2011 and 101 TFEU.

Company(ies) concerned

1. “VIOLAK INTERNATIONAL S.A.

2. “INEX MEDICAL S.A.”

3. “BBD NIK. LAINIOTIS S.A.”

Summary of Decision

According to the grounds of the Decision, the evidence available shows that the above undertakings infringed, by object, Articles 1 of Law 3959/2011 and 101 TFEU – by submitting, as commonly agreed, three distinct bids with the same price per product unit and with quantities added together to the total requested quantity (tied bids), in a tender where submission of distinct bids was possible for parts of the contract, and without this agreement encompassing the type and essence of the joint venture or even of the association of legal persons and, consequently, to be notified as such to the contracting authority, in violation of Αrticles 1 (1) of Law 3959/2011 and 101 (1) TFEU. The infringement lasted from 8.12.2021 to 03.06.2022, while it is stressed that such horizontal agreements constitute by object restrictions of competition.

Judicial Means -
Decisions by the Court of Appeal of Athens (Administrative Division) -
See Press Release HERE
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