The Norwegian Competition Authority has uncovered extensive collusion between Veidekke and NCC in connection with asphalt paving in the counties of Nord-Trøndelag and Sør-Trøndelag, the area surrounding the city of Trondheim. Through close dialog before competitive bidding, the two companies divided large public contracts between themselves. The collusion occurred during 2005-2008.

In addition, the Competition Authority has found one occasion where information was exchanged between Veidekke and NCC in the county of Møre og Romsdal in 2006.

Highest fines in Norway
The two companies have now received notice that the Norwegian Competition Authority is assessing whether to impose an administrative fine for violation of the Competition Act. If the authority makes a final decision to impose fines in line with the notice, they would be the largest fines imposed in a Norwegian competition case.

Divided the market – shared information
– We take very seriously the extensive illegal cooperation we have discovered, said the Director General for Competition Christine Meyer.

– Veidekke and NCC have divided the market for public contracts for asphalt in Middle Norway between them. They did the same with contracts for the City of Trondheim. In addition, they shared competitively sensitive information in connection with a bid in Møre og Romsdal in 2006, explained the Director General.

Veidekke blew the whistle
The Competition Authority learned about the case when Veidekke sought leniency—exemption from a possible fine for infringement—in January 2010. On the basis of the information from Veidekke, the Authority has carried out several searches and seizures and collected a large quantity of information, including testimony from numerous people in the industry.

Because Veidekke informed the Competition Authority about the illegal cooperation and contributed to solving the case, the company may be exempted from the infringement fine.

The case is not finalized
The Norwegian Competition Authority emphases that the assessments presented in the advance notice are preliminary, and that no final decision has been reached in the case.

According to the Law on Public Administration, the companies are given the opportunity to express their opinion before the Authority makes the decision. The two companies have a deadline of 9th December 2011 before which to submit their comments on the advance notice.

The Director General for Competition is holding a press conference today, 17 October, on the matter