The Hellenic Competition Commission is examining potential violations of the EU treaty. Specifically, it is investigating practices that might infringe on regulations against anti-competitive agreements, decisions by associations of businesses that hinder competition, and the abuse of a dominant market position. These inquiries aim to determine if there was any concerted effort to manipulate bidding processes to the detriment of fair competition and market integrity.
Nektarias Stamouli, reporting for Politico, has disclosed that an investigation into allegations of fraud concerning the allocation of €2.5 billion in EU funds to just ten companies in Greece is underway. The European Public Prosecutor’s Office has confirmed the launch of this investigation, focusing on the procedures and decisions that led to a concentrated disbursement of funds among a small group of beneficiaries.
Last month, the Hellenic Competition Commission conducted raids on the offices of Greece’s three leading telecommunications companies — Cosmote, Vodafone, and Nova — alongside five IT companies and two consulting firms.
In a related development, authorities in Italy, Austria, Romania, and Slovakia arrested over 20 suspects last week. These arrests are connected to an alleged fraud scheme siphoning €600 million from Italy’s Recovery Fund, highlighting a broader issue of fund misallocation within the EU.
The investigation in Greece is scrutinising the public tender process, amid allegations that companies conspired to prevent more than one of them from bidding on the same contract. This collusion is suspected to have restricted the diversity of beneficiaries and possibly inflated the fees charged, disadvantaging Greek taxpayers and undermining the intended impact of EU financial aid.
Greece, set to receive €35.95 billion from the Recovery and Resilience Facility (RRF), stands as one of the primary recipients of the fund aimed at bolstering the EU’s post-pandemic recovery. Notably, around 20% of these funds are earmarked for enhancing the country’s digital infrastructure, as outlined in the proposal to the European Commission.
Approximately 600 digital projects, valued at over €2.5 billion, have been tendered and allocated, as reported by the Central Electronic Register of Public Contracts. This significant distribution of projects is currently under scrutiny by both the European Public Prosecutor’s Office and the Hellenic Competition Commission. The focus of their investigation is to determine the processes by which these projects were awarded and to identify any misconduct in the awarding procedures.
The Hellenic Competition Commission has issued a statement indicating its investigation into potential violations of the EU treaty. Specifically, the inquiry aims to uncover whether there have been “anti-competitive agreements and decisions by associations of undertakings that prevent, limit, or distort competition, unilateral practices that constitute an invitation to collude or future price announcements in competitors and the abuse of a dominant position”.
According to Politico, Vodafone has acknowledged the ongoing investigation by the Hellenic Competition Commission, while other implicated companies have yet to respond to inquiries regarding the matter. Additionally, the office of the Greek Prime Minister and the Ministry of Development have not provided immediate comments on the situation.
The companies in question, totalling ten, have been awarded contracts for over 600 technology sector projects between 2020 and 2023, with each project valued at a minimum of €100,000. Notably, a significant number of these projects attracted just a single bid during the tender process, raising concerns over competition and procurement practices.
The investigation was initiated following a complaint filed by European Dynamics, a Greek software and IT services firm, in November 2023. The complaint to the European Commission, which supervises the Recovery and Resilience Facility (RRF)’s administration, alleged bias in the public tender process, favouring specific companies.
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