The Supreme Administrative Court (KHO) has upheld fines totaling approximately €1.5 million against several bus companies for submitting joint bids in public transport tenders in the Turku region in 2013, 2014, and 2016. The court found that these coordinated bids violated the Competition Act by restricting and distorting price competition and by aiming to maintain or expand the companies’ market shares.
The case marks the first time Finland’s highest administrative court has assessed the legality of joint bids to this extent. The court emphasized that competing companies must generally decide independently on their participation in tenders. Joint bids are considered permissible only in exceptional circumstances where demonstrable efficiency gains outweigh the anti-competitive effects, benefiting both the purchaser and end consumers. The burden of proof for such efficiency claims rests with the companies.
Director General Timo Mattila of the Finnish Competition and Consumer Authority (FCCA) stressed that companies should conduct careful competition law assessments before engaging in joint bidding.
“Submitting a joint bid is only acceptable in limited situations. Companies should therefore conduct a careful competition law assessment before participating in the tender.” – DIRECTOR GENERAL TIMO MATTILA
The fines imposed by the Market Court at the end of 2023 remain unchanged. The total penalties of €1,535,000 were levied on Jalon Liikenne Oy, Linjaliikenne Muurinen Oy (now Kunnon Kuskit Oy), Linjaliikenne Nyholm Oy, Savonlinja Oy, Turun Citybus Oy (now No Wheels Oy), and the joint venture LS-Liikennelinjat Oy.