VEHICLE SPARE PARTS SUPPLIERS THAT PRETENDED TO COMPETE IN PUBLIC PROCUREMENT PROCEDURES ADMIT BREACHING THE LAW ON COMPETITION

The Competition Council found that the company Manado and the small partnership Parts Ready had formed a cartel in public procurement procedures for vehicle spare parts: they coordinated their actions and commercial offers, including the price of parts. As the companies admitted having violated the Law on Competition, their fines were reduced by 15%.

In May-October 2025, Vilniaus viešasis transportas conducted public procurement for the purchase of spare parts for the repair of public transport vehicles. In two tenders, the companies Manado and Parts Ready, which sell vehicle spare parts, did not submit their bids independently, but coordinated their actions, including the price of the parts sold. The companies prepared commercial offers for each other, submitted them from the same computer and agreed in advance on the designated winner of the procurement procedure.

Jolanta Ivanauskienė, Chairwoman of the Competition Council, emphasised that public procurement in which participants only imitate competition loses its meaning and the procedures become fictitious. Fair competition in public procurement is one of the key measures that can ensure the effective use of state resources.

"If the aforementioned companies had not coordinated their actions, the company organising the procurement, Vilniaus viešasis transportas, would have been able to receive more competitive offers to purchase spare parts at a lower price," said J. Ivanauskienė.

According to her, it is important that competition among suppliers in public tenders is real and that the procurement procedure is not just a formal preparation of documents. The first signs that “something is wrong” can be noticed by organisations conducting public tenders and shared with the Competition Council, as Vilniaus viešasis transportas did in this case.

Since the companies admitted to violating the requirements of the Law on Competition, their fines were reduced by 15%. Manado was fined €17,950 and Parts Ready was fined €23,130.

The decision may be appealed to the Regional Administrative Court within one month of its delivery or publication on the Competition Council's website.

This is the second consecutive investigation completed by the Authority concluded through a settlement procedure, in which all companies suspected of infringement acknowledged the findings, leading the Competition Council to reduce the fines imposed. It should be recalled that in December last year, the fines imposed on companies providing electronic diary and digital learning platform services for prohibited agreements were also reduced by 15%.

The experience of the Competition Council over the past couple of years shows that companies suspected of infringements are increasingly cooperating with the institution and seeking to take advantage of the Leniency and Settlement Programs. In 2024–2025 alone, financial penalties were reduced by 15 to 90 percent for a total of 17 companies.

"This trend shows not only the businesses’ willingness to resolve the process amicably and mitigate their financial liability, but also a growing culture of competition, where companies seek to cooperate with the investigating authority," said J. Ivanauskienė.

She encouraged the business community to take a greater interest in competition law requirements, which are clearly presented with practical examples on both the Authority's website and the online training platform. Here, contracting authorities can also find relevant information on how to recognise potential cartels in public procurements. They are encouraged to consult the authority’s experts if they have suspicions about possible collusion between bidders.