Warning Issued to Yerevan Municipality by Competition Protection Commission

The Competition Protection Commission has examined the procurement procedures announced by the Yerevan City Municipality for the renovation of asphalt-concrete pavements and the comprehensive repair of unpaved (dirt) streets during the years 2017-2021. As a result, proceedings have been initiated against the Yerevan Municipality and 27 economic entities.

The investigation revealed that within the framework of the procurement proceedings for the years 2020 and 2021, synchronized negotiations on price reductions were conducted, which exhibited certain regularities. Specifically, 8 companies participating in the procurement procedures acted in coordination; they developed a mechanism for participating in the procurement procedures that allowed them to be recognized as selected participants based on mutually agreed quotas.

Consequently, the Yerevan Municipality has been warned for distributing the areas of work between companies, applying non-objective criteria in the administrative districts, which has been qualified as anti-competitive actions by a state body. In total, fines amounting to over 130 million drams have been imposed on 8 companies for signing anti-competitive agreements, while proceedings against 19 companies have been terminated.