Construction of Public and Private Works

Anti-competitive decision of association of undertakings, Abuse of a Dominant Position

Articles 1 & 2 of L. 3959/2011

Finding of infringement 

Ex officio investigation

ASSOCIATION OF BUILDING MANUFACTURERS OF GREECE (EKKE)

The Plenary Session of the HCC, with Decision No. 561 / VII / 2013 unanimously ruled that the Association of Building Manufacturers of Greece (EKKE), which represents construction companies operating mainly in the prefecture of Attica, contributed - through consecutive decisions / recommendations to its members throughout the years 2002 to 2009 - in the restriction of production (construction) and sale of newly built surplus apartments/houses in the Prefecture of Attica leading to the indirect determination of their prices, which constitutes a violation and a serious restriction of competition (article 1 of law 703/77, now article 1 of law 3959/2011). For this violation, the HCC imposed a fine of eighteen thousand three hundred ninety-four (18,394€) euros to the Association (EKKE).

The relevant ex-officio investigation of the General Directorate of Competition was carried out in relation to a plethora of press releases regarding the high real estate prices, as well as a relevant announcement of EKKE regarding the offer for sale of available buildings.

According to the reasoning of the Decision, the decisions and continuous recommendations of the Association (EKKE) constitute the consistent expression of its will to coordinate the behavior of its members in the market, and in particular to coordinate the sale of newly built surplus housing and to limit their construction. In this way, the Association (EKKE), in essence, replaced the economic risks faced by each one of its members due to the crisis that led to lower demand for newly built houses, with practices aiming at keeping house sale prices at their already existing levels (so that it could be possible to further raise prices in the future when a new balance would be reached between demand and supply in the housing market).

In addition to the imposition of a fine, the HCC obliged the Association (EKKE). to inform its members in written form (letter), within twenty (20) days, that the formation of building construction prices and the supply of new buildings on the market constitutes a free and autonomous business decision of each company-member of the Association, and that its members should refrain from any action of direct or indirect determination of their pricing policy and / or control of the supply of any existing surplus real estate in the market (for example, by setting a minimum percentage of supply or preventing new buildings from being constructed). Finally, the Association (EKKE) was also obliged to post on its website this letter for one (1) year, which should also contain an explicit reference to the operative part of the HCC Decision.