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Cartel collusion in state procurement of video equipment

The companies SRL "Rapid Link" and SRL "Victiana" were fined over 5 million lei for cartel price collusion during the procurement of portable video surveillance systems by the General Inspectorate of Police, Logos Press reported.
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Cartel collusion in state procurement of video equipment

According to the Competition Council, the antimonopoly authority’s investigation showed that the two companies “coordinated their actions, having initially determined who would win the contract”. And the bids for the tender “were only supposed to create the appearance of competition”. In reality, according to the agency, this mechanism eliminated any competitive uncertainty and resulted in the contract being awarded to the company that offered the highest price by prior agreement.

“The facts established constitute a violation of Article 5 of the Competition Law, which prohibits any agreement or concerted action having as its purpose or result the restriction or distortion of competition,” the Competition Council said.

The Rapid Link company was previously sanctioned by the Competition Council in 2024 for similar actions within the public procurement procedure organized by the Information Technology and Cybersecurity Service, resulting in a fine of about MDL 1.5 million. The decision on sanctions was appealed to the court, which is expected to rule on the legality of the antimonopoly authority’s decision.

The Competition Council draws the attention of public procurement participants to the risks associated with coordination of actions in the preparation of offers, exchange of information and involvement of the same persons in the process of submitting offers. Such practices may constitute a violation of the Law on Competition No. 183/2012 and may lead to the imposition of sanctions on companies in accordance with the provisions of the legislation prohibiting any agreements and concerted actions that limit competition on the market of the Republic of Moldova.


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