VVD Europarty on-line

WRITTEN QUESTION P-0308/03
by Elly Plooij-van Gorsel (ELDR) to the Commission

(30 January 2003)

Subject: International fraud in the construction industry

It has emerged from recent reports that building companies not only from the Netherlands but also from other Member States, such as Germany and Belgium, have been involved in fraud in the construction industry in the Netherlands. Firms from the Netherlands have also been involved in illegal agreements on pricing and works in other Member States. There has been talk of systematic cartel agreements, price-fixing and/or forgery, that have pushed up prices and resulted in the illegal sharing out of markets. These practices have been highly damaging to governments and consequently taxpayers in a number of Member States. The formation of cross-border cartels of this kind is in breach of European regulations.

- Is the Commission aware of the situation?

- If so, does the Commission think that cross-border cartels have been formed in breach of European competition rules and that measures need to be taken in this sphere?

- If so, what action does the Commission intend to take vis-à-vis the construction companies concerned? What can be done to compensate the injured parties?

P-0308/03EN
Answer given by Mr Monti
on behalf of the Commission
(6 March 2003)

The Commission is aware of cases of (alleged) fraud and price fixing in the construction market in the Netherlands through the national competition authority (NMa) and the media. It also heard of the allegations that non-Dutch enterprises are involved in these practices on the Dutch market and that Dutch enterprises are involved in foreign markets.

In cases of price fixing agreements that violate Article 81 of the EC Treaty either the Commission or national authorities can treat the case. National authorities can also act upon national legislation, even when trade between Member States is affected.

The NMa is investigating a number of these cases and keeps the Commission regularly informed of its activities.

When the Commission has credible information on a cartel with an appreciable element of inter-Member State trade involved, it will act upon this information or make sure a national authority will do so.

Community legislation does not foresee compensation for parties damaged by cartels. However, both private parties and public parties can take civil legal action against perpetrators of price fixing on the basis of national procedures. The Commission encourages parties to do so as it is another means of ensuring adherence to Community competition rules.