Category: Luxembourg
7 Luxembourg tile companies fined in state corruption scam
09/03/2010, by Adam Walder
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The Conseil de la concurrence (Competitions Council) has punished seven tile companies for secret agreements on market-sharing and price fixing for work in the public sector.

The Conseil de la concurrence (Competitions Council) has punished seven tile companies for secret agreements on market-sharing and price fixing for work in the public sector.

The decision on 5th March concludes the administrative process that determined a major infringement of competition law.

It all began back in December 2005 by surprise inspections conducted by the Competitions Council at the premises of three companies.

Initially, ten companies were suspected of having been involved in distributing work amongst themselves in the public sector in relation to the construction of the Cité judiciaire (court buildings) and price fixing.

The Competition Council finally accepted that it was actually seven companies that had schemed together and fixed prices.

They tried to disguise their “agreement” by making fake offers presented by other companies involved at a higher price, with no real desire to win the job. The pre-designated company would then offer a lower price, thus winning the job, even though it was pre-arranged.

Competition did not exist

When suspicions first emerged, companies still continued to try to deceive the state by submitting price analysis on which they were alo in agreement. In effect they to dangled competition in front of the nose of the state that in reality did not exist.

The Competition Council fined a total of 145 000 euros to the seven companies as follows:

  • 15 000 euros Carrelages Bintz,

  • 25 000 euros De Cillia Les Carrelages s.à r. l. & Cie,

  • 20 000 euros Marc F. Decker,

  • 25 000 euros Maroldt,

  • 15 000 euros Carrelages Willy Pütz,

  • 20 000 euros Carrelages Wedekind.

  • 25 000 euros Andreosso Carrelages

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