Competition Council fines several security services companies with RON 23.4 million

Anca Alexe 19/01/2018 | 11:22

The Competition Council announced on Thursday that it gave out fines worth a total of RON 23.42 million (around EUR 5 million) to 33 companies and four associations in the security services sector, for illegally setting minimum prices and facilitating the setup of minimum prices on the market.

Five companies (Euroguard SRL, G4S Secure Solutions, RPG Security Center, Securitas Services Romania, Aramis-Ro SRL) have admitted to their involvement to the anti-competition practice and had a reduction in their fines. One of the companies also had a reduction of its fine due to its difficult economic situation.

The Council found that the members of the associations agreed to set a minimum hourly price for security services. The companies claimed that the deal was made because some market operators had lower prices than what would have been required to cover their minimal mandatory legal expenditures.

The investigation on the security services market was launched in 2015 and targeted the Professional Association of Security Companies and its members, and was extended in 2016 to the Security Services Federation and its members.

Upon applying the sanctions, Competition Council officials say that they took into account the market characteristics based on which the deal was made, a market that is characterized by a strong tendency towards tax fraud and working off the books. They also signalled the relevant authorities to the possibly illegal behaviours of certain competing companies.

By making a deal to apply a certain minimum price for their services, companies involved no longer independently determine their own commercial policy, which leads to the elimination of competition.

Following the investigation, the Council made a series of recommendation to the General Inspectorate of the Romanian Police, the Territorial Work Inspectorate and the National Fiscal Administration Agency, based on their specific attributions.

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Anca Alexe | 29/11/2022 | 10:17

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