Executive Summary

The Competition Commission (WEKO) is opening two separate investigations into suspected bid-rigging in private construction projects in the Canton of Vaud. The suspicion: Two companies per project allegedly coordinated their offers and prices in 2023. The WEKO is examining whether cartel law violations restricting competition are present. The investigations are expected to take approximately one year. The leads originate from an ongoing proceeding in the Canton of Neuchâtel.

Persons

  • ERNEST GABELLA SA (Company under suspicion)

Topics

  • Cartel law
  • Bid-rigging
  • Construction sector
  • Swiss competition law

Clarus Lead

The WEKO investigations signal an increasing focus on cartel formation in the construction industry. While public tenders are increasingly monitored, cartels are now also appearing in private projects – a segment that has long received less attention. Significant cost risks emerge for construction companies and their clients: bid-rigging drives prices up and weakens competitive pressure, ultimately burdening the economy and investors.

Detailed Summary

Cartel Suspicion in Two Construction Projects: The WEKO is investigating whether bid-rigging occurred in two private projects from 2023 in the Canton of Vaud. Specifically, three companies are suspected – ERNEST GABELLA SA, Perrin Frères SA, and Zuttion Construction SA – of coordinating their offers. The suspicion relates to agreed-upon quotes and price coordination per project.

Legal Assessment: Bid-rigging is prohibited under Swiss cartel law. It occurs when bidders agree on the prices at which they will submit offers and how they will allocate contracts. Such agreements result in higher prices, weaken business efficiency, and hinder innovation – with direct impacts on the economy and the public sector. The WEKO has uncovered and investigated several bid-rigging cartels in the past.

Investigation Duration and Origins: The investigations will take approximately twelve months. The leads stem from an ongoing proceeding in the Canton of Neuchâtel, suggesting broader cartel law interest by the WEKO in the construction sector. All suspected companies are presumed innocent.

Key Statements

  • WEKO opens two parallel investigations into suspected bid-rigging in private construction projects in Vaud (2023)
  • Suspicion of price coordination and offer coordination by three construction companies
  • Bid-rigging is prohibited under cartel law and leads to price increases and innovation inhibition

Critical Questions

  1. Quality of Evidence: On what basis (documents, witness statements, digital communication) do the leads from the Neuchâtel proceeding rest, and how reliable is the transfer to the Vaud projects?

  2. Conflicts of Interest: Have the suspected companies already attracted attention in other cartel law proceedings, and is there evidence of repeat offenses?

  3. Causality: How will the WEKO demonstrate that the coordinated prices were actually agreed upon and not coincidentally identical (e.g., due to identical cost structures)?

  4. Enforceability: What sanctions (fines, exclusions) threaten if the allegations are confirmed, and how will these affect the companies involved and their clients?

  5. Transparency: Will the clients of the private projects be informed, and do they have a right to damages if agreements are proven?

  6. Systematics: Do the leads point to a broader cartel network in the Swiss construction sector, or are these two cases isolated?

Source Directory

Primary Source: WEKO Notice: Possible Agreements in the Construction Sector – https://www.news.admin.ch/de/newnsb/GIAJHNLxv_E-bSrNqE8KN

Verification Status: ✓ 16.04.2026

This text was created with the support of an AI model. Editorial Responsibility: clarus.news | Fact-Check: 16.04.2026