France: Regulator finds cartel activity in railway sector

France’s antitrust regulator, Autorité de la concurrence, (AdC) imposed fines totalling €300,000 (US$341,097) on Futrifer – Indústrias Ferroviárias, and one of its managers, for participating in a cartel in public tenders in the sector of railway maintenance services.

Five railway maintenance providers colluded to present bids above the maximum price in a tender launched by Infraestruturas de Portugal (IP).

In a separate tender proceeding, the same companies had colluded to share between themselves the different lots in contest, in a cartel arrangement in existence during 2014 and 2015.

The earlier conclusion of the proceedings against Futrifer – Indústrias Ferroviárias and its manager was possible due to the cooperation provided by this undertaking, which confessed its participation in the cartel and abstained from litigating, under a settlement procedure.

The use of this instrument is essential so as to hasten and simplify the proceedings whilst still sanctioning the companies that infringe competition rules.  Under the settlement procedure, the parties that confess to the facts and accept their share of responsibility in the infringement at issue, may benefit from a reduction of the applicable fine.