Bid-rigging

The fight against bid-rigging (i.e. collusion in public tenders) has become a major enforcement priority for national competition authorities.  Companies in the life sciences sector are increasingly targeted by bid-rigging investigations.[1] This development is promoted by the OECDICN and UNCTAD, which have done much work to sensitize competition and procurement officials about the harm caused by bid-rigging.  In February 2013, a WTO working paper warned that “bid rigging can raise the price paid by governments for goods and services in the order of 20-30%”.[2]  In a similar vein, the OECD emphasizes the need to contain public spending on healthcare, which has risen by over 70% per capita since the early 1990s and absorbed on average over 9% of GDP in 2010.[3]  In this context, national authorities consider competition enforcement against bid-rigging as a tool to achieve value for money in healthcare public tenders.

Examples of national cases in 2008-2012
Continue Reading Combatting Bid-Rigging in Healthcare Markets: Increased Enforcement Activity