Thursday, 31 August 2023

Press Release – Fines totalling €373,943.38 imposed on undertakings active in the supply of diagnostic rapid tests for SARS-CoV-2, following decision adopted under the Settlement Procedure (SP)

Subject: Fines totalling €373,943.38 imposed on undertakings active in the supply of medical products following decision adopted under the Settlement Procedure (SP). 

The Hellenic Competition Commission (HCC), by its unanimous Decision no 828/2023 adopted in plenary, in the context of the simplified Settlement Procedure laid down in Article 29A of Law 3959/2011 and according to its Decision no 790/2022, accepted the settlement proposals submitted by the companies: “VIOLAK INTERNATIONAL S.A.”, “INEX MEDICAL S.A.” and “BBD NIK. LAINIOTIS S.A.”,  following the relevant Statement of Objections, and imposed reduced fines totalling €373,943.38 for the infringement established, according to the grounds of the Decision, of Article 1 of Law 3959/2011 and 101 TFEU.

The case concerned the procurement of medical products (rapid tests) in the context of a relevant public tender. The above undertakings involved in the infringement, for which sufficient evidence was collected to establish an infringement of Article 1 of Law 3959/2011 and 101 TFEU in the context of a horizontal agreement, expressed in writing their interest in examining the possibility of their placement under the Settlement Procedure and submitted a relevant request, in accordance with para. 16 of HCC Decision No. 704/2020 on the Settlement Procedure.

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 noted that such horizontal agreements constitute by object restrictions of competition.

The Plenary of the HCC, by virtue of para. 35 of its Decision no. 790/2020, accepted the Settlement Proposals submitted by the above 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.

Imposesa 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.

Finally, it is noted that the Decision was issued according to the above simplified Settlement Procedure, following the relevant expression of interest on the part of the undertakings concerned for their placement under the SP and their consequent unequivocal acceptance of the violation found.

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