Competition Infringements Trigger Automatic Disqualification from Public Procurement Tenders

28 October 2015

With the new Hungarian Public Procurement Act (PPA) entering into force on 1 November 2015, companies regularly participating in tenders will need to fundamentally reassess their competition compliance strategies. This is so because the new rules provide for automatic mandatory exclusion from public procurement tenders as a consequence of any type of competition infringement (except for abuse of dominance violations). This is a major change compared to the previous regime where only hard-core bid-rigging cartels could result in exclusion, and even in case of such infringements disqualification was not automatic, but depended on the discretion of the contracting authority. With the new rules, things change fundamentally now.

Read the analysis from Dr. Márton Horányi, Head of Competition Practice group at bpv JÁDI NÉMETH below.