A CASE OF COLLUSION OF BIDDING

In 1995, Sheyang County Pulp & Reed Industry Corporation General Jiangsu Province decided to subject some of its reed beaches to bidding on October 19. On the day before bidding, more than 70 tenderers were initiated into a meeting at which they agreed to bid among them first so as to decide who would most possibly be the winning tenderers and what price he would pay, and then agreed to force the winning tender price down and to divide among them the price difference between the winning tender price and the price the tenderer promised to pay if the tenderer became the winning tenderers: As a result those who had participated in the meeting of October 18 got the price difference and divided it among them.

On December 27,1995, after the Administration of Industry and Commerce of Sheyang County undertook a thorough investigation, a decision was made in which the act of the initiators of the meeting was decided to have violated section 1 of article 15 of the Law of the People� Republic of China for Countering Unfair Competition which reads tenderers may not submit tenders in collusion with one another to force the tender price up or down and so have come under act of collusion of bidding, accordingly the winning tenders of the participants of the meeting were declared to be null and void and the main initators of the meeting were fined respectively for the violation under article 27 of the said law.

Source: extracted from the book A Selective Collection of Unfair

Competition Cases, industrial & Commercial Publishing House, 1996.

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