The Swedish Competition Authority fines undertakings in the sanitation sector

The two undertakings Sanerings Companiet i Malmö AB and Sopkärlstvätt i Malmö AB concluded a contract in 2014 to not compete with each other’s operations. This meant that the undertakings divided the markets for sanitation and cleaning services and for cleaning of garbage containers between themselves.

The contract, which was valid through to 2019, meant that the undertakings could not perform services which, according to the agreement, fell within the other undertaking’s operative scope. The undertakings’ division of services applied to both private business contacts and public procurements.

‘When undertakings divide a market between themselves, they are guilty of a serious infringement of the competition rules that can lead to significant fines. As a result of the limited competition, customers get fewer suppliers to choose from and this typically also results in higher prices’, says Rikard Jermsten, Director-General of the Swedish Competition Authority.

In 2020, Sanerings Companiet reported the infringement to the Swedish Competition Authority. The undertaking therefore gets its administrative fine waived, meaning it does not have to pay. For an undertaking to get its fine waived, it must be the first to report the infringement and the report must contain information that enables the Swedish Competition Authority to take action. The undertaking must also collaborate with the authority during the investigation.

‘The leniency programme is a very important part of our supervisory work. Having undertakings contacting the Swedish Competition Authority to inform us about illegal collaborations that they have participated in is very valuable to us and can mean that those undertakings are wholly or partially excused from paying administrative fines’, says Rikard Jermsten.

Under the decision from the Swedish Competition Authority, Sopkärlstvätt i Malmö AB is to pay an administrative fine of SEK 1,219,000, whereas the administrative fine of Sanerings Companiet i Malmö AB is waived.

Marie Strömberg Lindvall, Press Officer, +46(0)76 542 15 92, marie.stromberglindvall@kkv.se
Lucas Cyrén, Case Officer and Project Manager, +46(0)8 700 15 17, lucas.cyren@kkv.se

Read the decision, dnr 121/2021 (in Swedish)