In October 2021, Commissioner Vestager announced that the Commission was planning a series of dawn raids.[1] Since then, there has been an uptake in the number of dawn raids conducted across the EU. The Commission has undertaken unannounced inspections in the wood pulp industry,[2] the automotive sector,[3] the defense sector,[4] the animal health sector,[5] the natural gas sector,[6] and the fashion sector.[7] Now, the Commission has turned its attention to water infrastructure companies.[8]
On June 14, 2022, the Commission announced it was conducting dawn raids at the premises of water infrastructure companies suspected of bid-rigging in tenders involving EU funds for the construction of networks and treatment plants for drinking water and wastewater.
The Commission did not disclose the identity of the affected undertakings, nor the Member State in which the inspections took place, but confirmed that the dawn raids had been conducted in cooperation with the relevant national competition authority.
The Commission has investigated the water sector before, following unannounced inspections at the premises of French companies in April 2010.[9] However, the case was closed one year later due to a lack of evidence.[10]
[1] As reported in our February 2022 EU Competition Law Newsletter.
[2] Commission Press Release IP/21/5223, “Antitrust: Commission carries out unannounced inspections in the wood pulp sector,” October 12, 2021.
[3] Commission Press Release IP/21/5223, “Antitrust: Commission carries out unannounced inspections in the wood pulp sector,” October 12, 2021 and Commission Press Release IP/22/1765, “Antitrust: Commission carries out unannounced inspections in the automotive sector,” March 15, 2022.
[4] Commission Press Release IP/21/6241, “Antitrust: Commission carries out unannounced inspections in the defence sector,” November 23, 2021.
[5] Commission Press Release IP/21/5543, “Antitrust: Commission carries out unannounced inspections in the animal health sector in Belgium,” October 25, 2021.
[6] Commission Press Release IP/22/2202 “Antitrust: Commission confirms unannounced inspections in the natural gas sector in Germany,” March 31, 2022.
[7] Commission Press Release IP/22/3134, “Antitrust: Commission carries out unannounced inspections in the fashion sector,” May 17, 2022.
[8] Commission Press Release IP/22/3706, “Antitrust: Commission carries out unannounced inspections in the water infrastructure over alleged bid-rigging,” June 14, 2022.
[9] Commission Press Release MEMO/10/137, “Antitrust: la Commission confirme avoir mené des inspections en France auprès de plusieurs entreprises actives dans le secteur de l’eau et de l’assainissement, ” April 16, 2020 and Commission Press Release IP/12/26, “Antitrust: Commission opens proceedings against companies in French water sector,” January 18, 2012.
[10] Marchés de l’eau et de l’assainissement en France (Case AT.39756).