The Spanish antitrust regulator (CNMC) has launched an investigation into a possible allocation of tenders in the civil works, building, and other construction services sector in Cantabria.
These tenders have been issued by public bodies at the national, regional, and local levels.
Between March 25 and 27, the CNMC conducted inspections at the headquarters of various companies in the sector. These inspections represent a preliminary phase in the investigation process and could lead to the initiation of sanctioning proceedings. But as usual in these press releases the regulator reminded that the commencement of these actions does not imply a prior determination of the guilt of the implicated companies. Although the regulator only carries out dawn raids when there is at least suspicious of collusive behaviour.
Severity of Infractions
Agreements between competitors, including price-fixing or the allocation of markets and tenders, are considered very serious violations of the Spanish competition law. Such practices may result in fines of up to 10% of the total turnover of the infringing companies.
Leniency Program and Citizen Collaboration
To promote the detection of cartels, the CNMC has a Leniency Program that allows companies involved in such practices to obtain exemption from paying fines if they provide decisive evidence for their identification. Additionally, those that cooperate by providing valuable information during the investigation may benefit from a reduction in imposed sanctions.
Companies that apply for leniency are also exempt from the prohibition on contracting with the public sector, as stipulated in the Public Sector Contracts Law (LCSP). This exclusion applies to those sanctioned for serious competition violations, as established in Article 72.5 of the LCSP and Articles 65.4 and 66.5 of the LDC.
Furthermore, the CNMC operates the Anonymous Competition Informant System (SICA), an online platform that allows citizens and businesses to report anticompetitive practices anonymously. Through this tool, illicit agreements between companies, such as price-fixing or the irregular distribution of markets and tenders, can be reported.
