Antitrust Chronicle – Public Procurement

Antitrust Chronicle – Public Procurement

Dear Readers, The interaction between competition law and public procurement has increasingly been in the international spotlight in recent years. Through competitive public procurement and bidding, governments ideally can procure goods and services at market price (saving public funds), encourage small and medium-sized enterprises, and foster innovation, among other policy goals. As authors in this […]

Fighting Supplier Collusion in Public Procurement: Some Proposals for Strengthening Competition Law Enforcement

Fighting Supplier Collusion in Public Procurement: Some Proposals for Strengthening Competition Law Enforcement

By Alison Jones & William E. Kovacic –  Governments around the world spend an estimated $9.5 trillion of public money purchasing vital goods and services each year. The nature of public procurement systems, however, makes them prone to distortion through supplier collusion (collusive tendering or bid rigging). Where it occurs, unlawful collusive tendering is liable […]

New Research on the Effectiveness of Bidding Rings: Implications for Competition Policies

New Research on the Effectiveness of Bidding Rings: Implications for Competition Policies

By John M. Connor & Dan P. Werner –  Empirical examinations into the determinants of cartel overcharges are limited in the economic literature. We review the economic literature on auction theory and summarize the empirical research on the determinants of cartel overcharges. Our own analysis finds that the price effects of bidding rings, controlling for […]

Bid Rigging in Public Procurement

Bid Rigging in Public Procurement

By Robert Clark & Decio Coviello –  Given enough bidders, auctions represent an efficient way for governments to ensure the provision of goods and services. However, calls for tender often involve few participants who may sometimes coordinate their actions to rig auction outcomes and deter the entry of potential competitors, thus resulting in much higher […]

Prohibitions on Contracting and the Future of Public Procurement Antitrust Enforcement in Spain

Prohibitions on Contracting and the Future of Public Procurement Antitrust Enforcement in Spain

By Álvaro Iza & Luis Loras –  This article analyses public procurement antitrust enforcement in Spain since 2013 and addresses the absence of prohibitions on contracting imposed by the Spanish Competition Authority (“CNMC”); except in one occasion on March 27, 2019, despite their announcement back in 2016. It also seeks to ascertain how enforcement will […]

The Department of Defense’s Role in Merger Review

The Department of Defense’s Role in Merger Review

By David A. Higbee, Djordje Petkoski, Ben Gris & Mark G. Weiss –  Within the Office of Industrial Policy, the Department of Defense has a leanly staffed unit which reviews and advises the antitrust agencies on the Pentagon’s views about mergers and acquisitions affecting the defense industry, including their effects on competition and national security. […]

5 Years of Operation Car Wash: Revisiting Bid Rigging and Bribery Investigations

5 Years of Operation Car Wash: Revisiting Bid Rigging and Bribery Investigations

By Denis Guimarães & Diaulas Costa Ribeiro – This article addresses bid rigging and bribery investigations conducted by the Brazilian antitrust and anti-corruption authorities in the scope of the so-called Operation Car Wash (Lava Jato). After summarizing the main issues regarding infringements and penalties, it exposes the dissent between the fining criteria established in the […]

Shielding Public Procurement in Mexico: A Long Way Through Competition

Shielding Public Procurement in Mexico: A Long Way Through Competition

By Fernando Carreño – Competition is of great importance in the public procurement processes because, when a bid is designed with competition in mind, overpricing, favoritism, and undue influence are restricted. This in turn impedes the formation of collusive agreements that harm the public budget and the welfare of the entire society. The processes of […]

Antitrust Liability of Public Entities Acting as Awarding Powers In Public Procurement…The Hesitant Spanish Case

Antitrust Liability of Public Entities Acting as Awarding Powers In Public Procurement…The Hesitant Spanish Case

By Antonio Miño López – Treuhand I and II expanded antitrust liability beyond its customary framework, to include the auxiliary firms deliberately and actively facilitating a cartel’s setting up and performance. Two Spanish Supreme Court ground-breaking rulings – SESCAM and Uva de Jerez – stretched out that doctrine to public entities acting as economic operators […]