Competition Council Investigates Romania’s IT&C Equipment Market

The Competition Council conducted unannounced inspections at the headquarters of 14 companies active in Romania’s information technology and communication equipment market. These inspections are part of an investigation into possible rigging of public tenders related to the sale of information and communication technology equipment supplied by Cisco Systems Romania SRL.

“These were among the most extensive inspections we’ve conducted, both in terms of duration, spanning 3 days at the companies’ headquarters, and the human resources involved, requiring the efforts of extensive teams of specialists,” said Bogdan Chirițoiu, the president of the Competition Council.

The competition authority has indications that the public tenders for the sale of equipment supplied by CISCO might be divided among bidders with the support of the supplier, either directly or through authorized distributors, in order to favor certain companies. This possible anti-competitive practice may have started as early as 2019.

The companies subjected to unannounced inspections are: Cisco Systems Romania SRL, Arctic Stream SA, Datanet Systems SRL, Dataware Consulting SRL, Dendrio Solutions SRL, ETA2U SRL, Evotech-IT SRL, Logic Computer SRL, Metaminds SA, Trencadis Corp SRL, Alef Distribution RO SA, Ingram Micro Distribution SRL, Logicom Information Technology Distribution SRL, and Prime Telecom SRL.

Unannounced inspections, authorized by the Bucharest Court of Appeal, are deemed necessary to obtain all information and documents needed to clarify the potential anti-competitive practices under investigation. Conducting these inspections does not imply any pre-judgment regarding the guilt of the companies involved.

The competition authority mentioned that some of the indications leading to the investigation were provided to the competition authority by contracting authorities and through the whistleblower platform. Additionally, clues emerged from the Competition Council’s analysis of public procurement procedures within the investigated market.

‘If the Competition Council finds a violation of competition rules, the companies involved risk fines of up to 10% of their turnover. However, companies that cooperate with the competition authority under the leniency program may receive immunity from fines or substantial reductions in fines,” says a Competition Council press release.

Bogdan ChiritoiuCisco Systems Romania SRLCompetition CouncilequipmentinspectionsinvestigationIT&Cpublic tendersriggingRomaniaTechnology
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  • Panagiotis Spyridis

    Where there is smoke there almost always is a fire.