Unannounced Inspections by the Slovenian Competition Protection Agency (AVK) into suspected cartel collusion

The Slovenian Competition Protection Agency (AVK) conducted unannounced inspections at the business premises of several IT companies (Unistar lc, Lancom d.o.o., Acord-92 d.o.o., and Gambit Trade d.o.o.) on April 11, 2024. The inspection was carried out due to substantiated reasons to suspect that the companies had colluded on prices of personal computers in public procurement processes, subsequently divided the orders, and thereafter acted in concern in submitting bids in these processes.

Cartels are a form of restrictive conduct where providers of certain services or products agree on prices or other terms and conditions in order to restrict competition. Cartel collusions are illegal because they lead to less competition, lower quality goods at a higher price and unfair market practices. However, cartels are difficult to expose because they are hidden from the public, so the penalties for proven cartel collusion are extremely high.

The AVK's inspection represents one of the means available to the AVK in the investigative process, in which it investigates alleged violations of competition law (prohibition of restrictive agreements and cartel collusions, prohibition of abuse of dominant position). In accordance with Article 54 of the Prevention of Restriction of Competition Act (ZPOmK-2), the AVK can conduct unannounced inspections of all companies, either based on the consent of the company or a reasoned written order from the competent court. Within the scope of the inspection, authorized persons of the AVK may enter the premises, land, and vehicles of the company, inspect and seize business books and all other documentation related to the company's operations, request written or oral explanations from any person, and perform other actions in accordance with the purpose of the inspection.

It is important for companies, in their operations and business transactions (including contracts), to be aware of the significance of risks arising from competition law. In cases such as the one described above, it is also important for companies to be familiar with the conduct of inspections, their procedural rights (e.g., exclusion of privileged communication from the documents under investigation, etc.) in inspection proceedings, and most importantly, how to act in the event of an unannounced inspection by the AVK.

The Law firm Križanec & Partners in Slovenia has extensive experience in the field of competition law. Our attorneys regularly advise companies on competition law issues, alert them to potential competition law risks in concluding transactions, and can also assist you in procedural actions in administrative offense proceedings conducted by the AVK. For further information and legal advice on any questions related to competition law, please contact our competition law expert, Attorney at law Dinar Rahmatullin.