Swiss Probe Construction Firms Over Alleged Bid-Rigging

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The Swiss Competition Commission (COMCO) has initiated a formal investigation into suspected anti-competitive behavior involving several construction firms in the canton of Vaud. This latest inquiry focuses on two private development projects completed in 2023, where investigators suspect that bidding processes were illegally coordinated to manipulate contract outcomes. The move underscores Switzerland’s intensifying crackdown on “bid-rigging”—a practice where competitors secretly agree on prices and winners to avoid genuine market competition.

Evidence for this new investigation reportedly emerged from a separate, ongoing inquiry into construction practices in the neighboring canton of Neuchâtel. Authorities are looking into whether the firms involved bypassed standard competitive protocols to ensure specific outcomes, a move that typically results in inflated project costs and reduced quality for the end client. Under Swiss antitrust law, such horizontal agreements are strictly prohibited because they drain economic resources and discourage industrial innovation.

The investigation officially names ERNEST GABELLA SA, Perrin Frères SA, and Zuttion Construction SA as the entities under review. While the Commission has stated that all involved companies are presumed innocent during this phase, the inquiry is expected to last roughly one year as officials sift through digital records and internal communications. If collusion is confirmed, the companies could face significant financial penalties based on their turnover and the severity of the market distortion.

A final ruling is anticipated by mid-2027.