Bid rigging, also known as collusive tendering, is an illegal and anti‑competitive practice where competing suppliers collude to manipulate the outcome of a procurement process. Common methods include deciding in advance who will win (bid rotation), agreeing not to bid (bid suppression), submitting intentionally high or uncompetitive bids (cover bidding), or allocating different geographic areas or contract types among cartel participants.
This collusion distorts the tendering process by preventing genuine competition, resulting in inflated prices or reduced quality at the expense of public buyers and taxpayers. Under EU competition law, such agreements are prohibited as cartels fall under Article 101 of the Treaty on the Functioning of the European Union (TFEU), which prohibits agreements that restrict competition.
Bid rigging undermines transparency, equal treatment, and fair procurement objectives, exposing contracting authorities to inflated costs, inefficiencies, and reputational risk. It is subject to strict enforcement and enforcement actions by competition authorities across the EU.
