Three undertakers given cartel fines

Three firms of undertakers have accepted the administrative fines imposed on them for engaging in unlawful price collusion, i.e. a cartel. The companies will now pay the fines proposed by the Competition Authority and will thereby avoid court proceedings.

The three firms, which operate in Värmland, agreed on price levels when bidding for contracts for the transportation of deceased. The violations of competition law occurred in connection with public procurement in the municipality of Karlstad and the Värmland county council. The contracts in Karlstad also covered the municipalities of Hammarö, Munkfors and Sunne. In addition, two of the three firms agreed on prices in connection with contracts on offer in the municipalities of Säffle and Kristinehamn.

When the municipality of Karlstad called for tenders, identical bids arrived: SEK 1 689 per transport of deceased by day and SEK 2 642 per transport evenings and weekends.

When Säffle launched a similar procurement process, no bids were submitted. At a meeting called by the municipality, the three firms presented identical prices – the same as the ones they had offered Karlstad.

The three undertakers – Säffle-Åmåls begravningsbyrå, Begravningsbyrån Roland Andersson and Fonus ekonomisk förening – have agreed to being fined. This means they will each pay the administrative fine proposed by the Competition Authority. It also means they will not be taken to court.

“This is the second time since such an option became available that companies in a cartel have chosen to accept being given administrative fines,” says the Competition Authority Director General, Dan Sjöblom. “It shows that such an approach works. The legal process is faster and less costly. At the same time, we get closure sooner, which benefits all concerned.”

The fines amount to SEK 143 000 in the case of Säffle-Åmåls begravningsbyrå, SEK 41 000 in the case of Begravningsbyrån Roland Andersson and SEK 301 000 in the case of Fonus.

The fines have been reduced by five per cent in each case since the purchasing authorities have not expressed themselves clearly and unequivocally when communicating with the suppliers in the procurement process.

“The companies may have been given the impression that some purchasers had no objection to them submitting identical prices, and we see that as a mitigating circumstance,” says Dan Sjöblom.

“These types of bidding cartels represent serious violations of the competition rules. They mean that taxpayers – via the municipality and the county council – may have had to pay excessively high prices for the services they have bought.”

For further information, please contact:

Jimmy Dominius, Press Officer, tel +46 8-700 15 80 or +46 76-542 15 80
Hanna Witt, Senior Case Officer (Comp. Law Dept.), technological +46 8-700 16 44
Eva Berndtsson, Head of Division (Legal Dept.), tel +46 8-700 16 04