The Croatian Competition Agency (AZTN) has launched a formal investigation into several construction and consulting firms following allegations of a prohibited cartel agreement. The probe, which has already seen unannounced “dawn raids” on corporate offices, focuses on companies involved in the critical structural reconstruction of buildings damaged by the devastating 2020 Zagreb earthquake.
The investigation targets a group of seven companies, including Eptisa Adria, Expertplan, Projektna cjelina, JC development & strategy, Consol, Građevinski laboratorij, and ADVANCED CONSULTING ENGINEERING SERVICES (ACES). The agency is looking to determine if these entities engaged in price-fixing, market division, or other practices that restricted competition during public procurement processes.
Concerns Over Public Procurement Integrity
The case was brought to the attention of competition regulators by the State Commission for the Control of Public Procurement Procedures (DKOM). Observers noted irregularities during a tender issued by the Ministry of Physical Planning, Construction, and State Property. This specific procurement involved operational coordination services for the structural reconstruction of multi-apartment and residential-commercial buildings throughout the City of Zagreb.
Given the immense social and financial stakes of the earthquake recovery efforts, any attempt to distort market competition is viewed with extreme gravity. The AZTN’s preliminary market examination found sufficient evidence to suggest that the companies may have violated Article 8 of the Competition Act, which strictly prohibits agreements that control or divide markets and sources of supply.
Surprise Inspections and High Court Approval
To secure evidence that could confirm these suspicions, the AZTN took the rare step of conducting unannounced searches of business premises on January 21, 2026. These “dawn raids” were carried out following an order from the High Administrative Court of the Republic of Croatia and targeted five of the seven companies involved. These inspections are designed to uncover internal communications, pricing documents, or other records that might prove the existence of a secret agreement.
The Path Forward
The initiation of these proceedings is a procedural step and does not imply a final verdict on the guilt of the firms involved. The AZTN has emphasized that the case will be decided based on a comprehensive review of the facts and evidence collected during the ongoing investigation.
If found liable, the companies could face significant financial penalties and damage to their reputations, particularly as they are active in a sector that is vital to the country’s national recovery. The outcome of this case will be closely watched by the legal and construction communities as a bellwether for how the Croatian government intends to protect the integrity of public funds dedicated to urban reconstruction.