EC carries out surprise cartel inspection at Elios
Inspectors from the European Commission (EC) carried out a surprise inspection of five Hungarian firms in March, including controversial lighting company Elios, on suspicion of illegal cartel activity, according to Hungarian news site index.hu.
Istv谩n Tiborcz (left) with Prime Minister Viktor Orb谩n (photo: Orb谩n始s official Facebook page)
According to index.hu始s sources, the inspectors appeared at all companies at the same time, confiscating electronic devices and looking through data carriers, trying to find proof of the firms coordinating with each other to carve up the market.
The inspection was part of a long-term investigation aiming to find out whether Elios illegally coordinated with other corporations during state tender processes, jeopardizing free market competition principles. In 2015, the EC鈥檚 European Anti-Fraud Office (OLAF) launched a probe into projects awarded to Elios - in most cases without competition - that were almost entirely funded by the EU.
Elios formerly belonged to Prime Minister Viktor Orb谩n始s son-in-law Istv谩n Tiborcz. Following its investigation, said to focus on the period when Tiborcz still owned the company, OLAF advised the EU to completely revoke the funds given to Elios after finding irregularities in Elios始s tender wins between 2011 and 2015.
Index.hu reports that in the event investigators determine that the companies were involved in cartel activities, the EC could impose hefty fines of up to 10% of each company始s revenues.
ADVERTISEMENT
KSH Dismisses Reports of Eurostat 'Investigation'
Hungarian-American Business Chamber Established in Chicago
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
