Romania's Competition Council slaps EUR 5 mln fines on private security cartel

Romania’s Competition Council sanctioned 33 companies and four associations active on the private security services market with total fines worth some EUR 5 million for agreeing on a minimum price for their services. Five of the sanctioned companies admitted to participating in the cartel and got lower fines. The representatives of the 33 private security firms, which are part of several associations, agreed to set a minimum hourly fee for their services, during association meetings, according to the Competition Council. The companies claimed that they agreed on this minimum price because some operators were going with prices that didn’t even cover their minimum legal expenses. The Competition Council started its investigation in 2015, targeting the members of one association, and expanded it in 2016 to three other associations. In setting the sanctions, the Competition Council also took into account the characteristics of this market, which has a strong tendency towards tax evasion and black labor. The competition watchdog also made recommendations to the Romanian Police, Labor Inspection, and tax authority ANAF based on its findings after this investigation. editor@romania-insider.com