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The CC fines Undertakings for Bid Rigging in Medical Procurements



On 10 December, The Competition Council (CC) of Latvia fined two undertakings – SIA Optika un Diagnostika and SIA Arbor Medical Korporācija – for coordinating tenders in a total of six different procurements of medical equipment for medical treatment facilities. The fine was set in the amount of respectively 6440 EUR and 59 670 EUR.

Information containing commercial secret of both undertakings was freely available and used by one employee, thus, the real competition between undertakings was eliminated. Coordinated tenders were submitted in the following procurements:

  • device for an artificial lung ventilation for VSIA Bērnu klīniskā universitātes slimnīca (state children hospital);
  • medical devices and equipment for SIA Rīgas Dzemdību nams (state maternity hospital);
  • devices for oral and maxillo-facial surgery for SIA RSU Stomatoloģijas institūts;
  • patient monitors for SIA Rīgas Austrumu klīniskā universitātes slimnīca (state hospital);
  • veterinary devices and equipment for Latvia University of Agriculture;
  • ultrasound system of a premium class for SIA Salaspils veselības centrs.

SIA Arbor Medical Korporācija operates as both a wholesaler and a participant in public procurements. SIA Optika un Diagnostika (currently SIA Life and Nature) purchases medical devices from SIA Arbor Medical Korporācija to offer in procurements.

The investigation was initiated after reasonable suspicions about coordinated tenders in procurement organized by the Children's University Hospital.

Under the Leniency Programme, SIA Arbor Medical Korporācija disclosed information about coordinated actions in five other procurements. The undertaking took an opportunity to use Leniency Programme after the case was initiated, pleading guilty and offering significant additional information. Due to the cooperation with the competition authority, the fine to the undertaking was reduced by 50%. 

SIA Optika un Diagnostika also applied for the Leniency Programme, pleading guilty and disclosing additional information on implementation of the infringement. The fine was reduced by 20%.

Both undertakings in the context of the Leniency Programme receive exemption from the prohibition to participate in public procurement.

 

For media inquiries

Inita Kabanova

Head of Communication Division

The Competition Council of Latvia

E-mail: inita.kabanova@kp.gov.lv

Ph: +371 67365210; Mob: +371 20219048