Competition authority fines companies HUF 82 mln

Analysis

The Hungarian Competition Authority (GVH) fined Finella Investment (the legal successor of HTD Szaknévsor Kiadó), JRM Produkció, LIGA TV, “PUPU Produkció” Filmgyártó and Nosztalgia-Design a combined HUF 81.97 million on charges of cartel activity in public procurement procedures called by public media organization MTVA to hire mobile broadcasting units in November 2013, Hungarian news agency MTI reported yesterday.

Based on evidence seized through site inspections conducted without prior notice, GVH established that LIGA TV initiated the consultations on the form and contents of taking part in MTVAʼs 2013 framework agreement tender and that the companies listed above coordinated their behavior in order to ensure that LIGA TV would be able to participate in the tenders as sub-contractor to each of the companies. This was intended to squeeze out competitors in the second round of the procedures, with only the companies taking part in the first round assuming the top four places.  

GVH took into consideration the fact that the framework agreements were not concluded and therefore had no actual effect on the market.

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