Four companies sanctioned by the Competition Council for rigging Romgaz auctions

The Competition Council has imposed financial penalties totaling nearly 13 million lei (2.9 million euro) on four companies for rigging the auctions organized by Romgaz within June 2, 2008 and October 12, 2009 to award the oil and gas drilling works in Romania.

Another company involved in this anti-competition practice, Foserco, received immunity from fines as it cooperated with the competition authority within the leniency program, states a press release of the Romanian competition authority.

The sanctioned companies are: Dafora S.A. - 3.97 million lei (885,278 euro), Foraj Sonde S.A. Craiova - 3.91 million lei (871,959 euro), Foraj Sonde S.A. Targu Mures – 3.73 million lei (831,892 euro), Upetrom 1 Mai S.A. (for the activity of Aquafor International S.R.L.) - 1.35 million lei (302,545 euro), which during the infringement period accounted for 70 percent of the market.

"It is the first investigation opened following a leniency application. The companies have agreed to share the drilling work for which Romgaz planned to organize public auctions, establishing the winners and the way they had to act before the auctions. One of the companies involved in agreement has provided us the evidence of infringement of the Competition Law and therefore it was exempted from paying the fine",commented Bogdan Chiritoiu, President of the Competition Council.

The leniency policy is a tool through which the Competition Council may apply a favorable treatment to the companies involved in a cartel agreement that cooperate with the competition authority to detect and sanction anti-competition practices. By doing so, the companies can benefit from substantial reduction of fines or complete immunity depending on the moment they contact the competition authority and the information provided for the application of leniency policy.