Because the company cooperated with the Federal Competition Authority (BWB) after the house searches as part of the leniency program to fully clarify the facts, a reduced fine of 7.085 million euros was requested, the BWB announced in a press release on Monday morning. The company accepted the fine.
Saubermacher emphasized in a press release also sent on Monday morning that it had made a “significant contribution to the clarification” through “comprehensive cooperation.” According to the BWB, Saubermacher Dienstleistungs AG participated in anti-competitive price fixing, market allocation and the exchange of competition-sensitive information between July 2002 and March 2021. “After the declaratory action against the first key witness in February of this year, this is now the first application for a fine against a company in this complex of proceedings. The BWB team is gradually working on the evidence secured in order to bring the further proceedings to the cartel court quickly,” said BWB General Director Natalie Harsdorf. She had already announced applications for fines for this year at the beginning of the year.
“80 individual cases” in 20 years
Table of Contents
- 1 “80 individual cases” in 20 years
- 2 “It is a scandal and completely incomprehensible”
- 3 “Waste disposal is a huge business”
- 4 Examinations also in Upper Austria
- 5 Here are some “People Also Ask” (PAA) related questions for the title **Exposing the Waste Cartel: Saubermacher Fined €7.085 Million for Anti-Competitive Practices**:
- 6 Here are some PAA (People Also Ask) related questions for the title “Exposing the Waste Cartel: Saubermacher Fined €7.085 Million for Anti-Competitive Practices”:
Table of Contents
- 1 “80 individual cases” in 20 years
- 2 “It is a scandal and completely incomprehensible”
- 3 “Waste disposal is a huge business”
- 4 Examinations also in Upper Austria
- 5 Here are some “People Also Ask” (PAA) related questions for the title **Exposing the Waste Cartel: Saubermacher Fined €7.085 Million for Anti-Competitive Practices**:
Saubermacher spoke of “around 80 individual cases” in the period in question “that are not acceptable under antitrust law or according to our system of values and ethics”. These cases were “identified” together with the BWB, according to the company, which also pointed out that it had processed a total of one million orders across Austria between 2002 and 2021. No information was given on the order volume of the individual cases in relation to the other orders.
The investigations into the waste cartel became public in March 2021, when more than 20 locations across Austria were investigated. Energie AG in Upper Austria, Saubermacher AG in Styria and Brantner in Lower Austria confirmed that their premises had been searched at the time. The suspicion was of illegal agreements to the detriment of industry and waste management associations, municipalities and ultimately their citizens. Following further applications for leniency, whistleblower reports and agreements, additional house searches were carried out a year later. An application for a declaratory judgment was filed with the Cartel Court against the first leniency witness, FCC, in February this year.
The waste management market in Austria comprises around 300 companies, including a number of national corporations and many smaller companies. For these companies, the so-called waste is a billion-dollar business. The industry has a turnover of more than five billion euros per year. Of this, the six largest companies together have a turnover of around two billion euros.
“It is a scandal and completely incomprehensible”
On Monday, the Styrian Greens demanded full clarification from the municipal representatives, Governor Christopher Drexler (ÖVP) and his deputy Anton Lang (SPÖ). Control spokesman Lambert Schönleitner wants to know how much damage has been done to the Styrian waste management associations, municipalities and citizens and how and by when this will be remedied: “It is a scandal and completely incomprehensible that illegal price fixing and market allocation have taken place for almost two decades at the expense of our municipalities and their citizens.” Full transparency is now needed and the question is why control mechanisms have failed.
The FPÖ echoed the same sentiment: “After such findings, we cannot simply move on to business as usual – especially not when the damage affects the communities and, at the end of the day, the taxpayers directly,” said community spokesman Stefan Hermann, whose hometown of Feldkirchen near Graz is also the headquarters of Saubermacher. “We will submit appropriate applications through our officials in the community halls, which aim to precisely determine the negative consequences of the garbage cartel on the tax situation in the communities. It is also not impossible that communities that have been harmed by the formation of the cartel will take legal action against the companies in question.”
“Waste disposal is a huge business”
Graz’s KPÖ mayor Elke Kahr saw her warnings confirmed: “The price fixing that has now come to light makes it necessary for the city of Graz to check whether it has suffered any financial damage. These events show that we were right to warn against handing over public tasks to private providers. Waste disposal is a huge business that comes with great responsibility.”
In this context, the city of Villach stated that Villacher Saubermacher GmbH und Co KG was not affected by the BWB investigations. It is a subsidiary of the city of Villach. It is a public-private partnership model, with the city of Villach and Saubermacher being equal partners.
Examinations also in Upper Austria
Proceedings are also still ongoing against Energie AG and its waste subsidiary, BWB spokeswoman Sarah Fürlinger confirmed to the Oberösterreichische Nachrichten. “Umwelt Service GmbH has cooperated with BWB from the outset, which is investigating a large number of waste management companies,” Energie AG said. These investigations have not yet been completed, but the company is actively working to clarify the matter.
This article was last updated on September 9, 2024 at 6:00 p.m.
ePaper
Exposing the Waste Cartel: Saubermacher Fined €7.085 Million for Anti-Competitive Practices
In a significant development, Saubermacher Dienstleistungs AG has been fined €7.085 million by the Federal Competition Authority (BWB) for participating in anti-competitive price fixing, market allocation, and exchanging competition-sensitive information between July 2002 and March 2021. The company cooperated with the BWB as part of the leniency program, which led to a reduced fine.
According to the BWB, Saubermacher identified around 80 individual cases that were not acceptable under antitrust law or according to their system of values and ethics. These cases were identified together with the BWB, and the company processed a total of one million orders across Austria between 2002 and 2021.
The investigations into the waste cartel became public in March 2021, when more than 20 locations across Austria were searched. Several companies, including Energie AG in Upper Austria, Saubermacher AG in Styria, and Brantner in Lower Austria, confirmed that their premises had been searched. The suspicion was of illegal agreements to the detriment of industry and waste management associations, municipalities, and ultimately their citizens.
The waste management market in Austria comprises around 300 companies, including national corporations and smaller companies. The industry has a turnover of more than five billion euros per year, with the six largest companies together having a turnover of around two billion euros.
The Styrian Greens
Exposing the Waste Cartel: Saubermacher Fined €7.085 Million for Anti-Competitive Practices
The Austrian waste management company, Saubermacher Dienstleistungs AG, has been fined €7.085 million by the Federal Competition Authority (BWB) for participating in anti-competitive price fixing, market allocation, and the exchange of competition-sensitive information between July 2002 and March 2021. This fine is a result of the company’s cooperation with the BWB through the leniency program, which led to a reduced fine.
Saubermacher’s Cooperation and Fine
Saubermacher emphasized that it had made a “significant contribution to the clarification” through “comprehensive cooperation” with the BWB. The company accepted the fine and acknowledged participating in around 80 individual cases that are not acceptable under antitrust law or according to their system of values and ethics. These cases were identified together with the BWB, and Saubermacher pointed out that it had processed a total of one million orders across Austria between 2002 and 2021.
The Waste Cartel Investigations
The investigations into the waste cartel became public in March 2021, when more than 20 locations across Austria were investigated. The suspicion was of illegal agreements to the detriment of industry and waste management associations, municipalities, and ultimately their citizens. Following further applications for leniency, whistleblower reports, and agreements, additional house searches were carried out a year later. An application for a declaratory judgment was filed with the Cartel Court against the first leniency witness, FCC, in February this year.
The Waste Management Market in Austria
The waste management market in Austria comprises around 300 companies, including national corporations and many smaller companies. For these companies, waste management is a billion-dollar business, with an industry turnover of more than five billion euros per year. The six largest companies together have a turnover of around two billion euros.
Reactions to the Fine
The Styrian Greens demanded full clarification from the municipal representatives, Governor Christopher Drexler (ÖVP) and his deputy Anton Lang (SPÖ), on the damage done to the Styrian waste management associations, municipalities, and citizens. Control spokesman Lambert Schönleitner wants to know how much damage has been done and how and by when this will be remedied. The FPÖ echoed the same sentiment, stating that after such findings, they cannot simply move on to business as usual, especially not when the damage affects the communities and citizens.
Saubermacher’s Other Activities
Apart from the fine, Saubermacher has also been involved in other activities, such as partnering with UNTHA to provide a waste shredding solution [[1]]. The company has also been committed to preserving bee numbers and produces around 300 kg of fine blossom honey every season [[2]]. Additionally, Saubermacher offers disinfection services, including atomization, which can clean hard-to-access areas [[3]].
the fine imposed on Saubermacher Dienstleistungs AG is a significant step in exposing the waste cartel and promoting fair competition in the waste management market in Austria. The company’s cooperation with the BWB and acceptance of the fine demonstrate its commitment to rectifying the situation and moving forward.