Business case
A public entity in Europe active in the energy and environmental sector regularly relies on private subcontractors to carry out certain works. An antitrust investigation revealed that several of these subcontractors had engaged in illegal information exchanges and coordinated their responses to requests for quotes in order to reduce uncertainty and increase prices. The public entity sought damages to compensate for the overcharge incurred as a result of collusion.
Bid rigging is a common issue across many markets, particularly where the same companies repeatedly compete for contracts. However, each case has unique circumstances, and assessing the effects of anticompetitive behaviour requires a thorough understanding of the commercial context, the legal framework, and the economic incentives of the parties involved.
We analysed in detail the competitive environment and the contracts that were affected by the bid-rigging practices. We then determined how prices would have evolved in the absence of the illegal anticompetitive practices, should private companies have competed freely. We computed damages based on these prices. Our expert report was submitted to a court to assist the judges with awarding the right amount of damages.