Competition Commission fines gravel company millions
Published: Tuesday, Aug 27th 2024, 08:10
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The Competition Commission (ComCo) has fined Kies AG Aaretal (KAGA) and its shareholders a total of CHF 5.3 million. Several companies had violated the Cartel Act in the gravel and landfill sector, the Competition Commission announced on Tuesday. The ComCo is thus concluding the last of three proceedings in the Bernese construction materials sector.
KAGA is the largest gravel and landfill pit in the Bern area. Its seven shareholders are also active in the gravel and landfill sector. According to the Competition Commission on Tuesday, the company and its shareholders protected themselves from competition in their area and hindered competitors in their business area.
In doing so, they coordinated their activities primarily in the KAGA Board of Directors, on which each shareholder had a key person. According to the Competition Commission, the shareholders benefited from significantly lower gravel prices and subsidized transport costs compared to competitors. They also committed themselves to a non-competition clause, namely not to acquire any mining rights in the KAGA area and not to mine any gravel.
KAGA also temporarily linked the dumping of excavated material to the purchase of gravel to the detriment of non-shareholders, as the ComCo further stated. These and other practices had also inhibited competition in the gravel and landfill sector to the detriment of SMEs and the public sector.
According to the ComCo, these areas are already heavily regulated, the barriers to market entry are very high and competition is limited. The unlawful conduct of KAGA and its shareholders therefore made competition even more difficult. The ComCo's decision can be appealed to the Federal Administrative Court.
In 2018 and 2021, the Competition Commission had already uncovered unlawful practices in the gravel, concrete and surfacing sectors in two investigations.
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