Sanctions

The Swedish Competition Authority may bring proceedings at a general administrative court requesting that a contracting authority be ordered to pay a public procurement fine, which is a penalty that passes to the central government.

A public procurement fine may be imposed if an illegal direct award of contracts has taken place, i.e. an agreement has been concluded with a supplier without a publication of a contract notice although the agreement should have been preceded by a published award procedure under LOU. In the case of the illegal award of a contract without prior contract notice, the Swedish Competition Authority may make its own decision on whether to apply for the imposition of a public procurement fine.

The Swedish Competition Authority must apply for the imposition of a public procurement fine if a court, when reviewing the effectiveness of an agreement, has determined that the agreement may continue to apply despite having been concluded in contravention of a standstill period or an prolonged standstill period, or if a court, when reviewing the effectiveness of an agreement, has determined that the agreement by rights ought to have been declared ineffective, but that it may continue to apply owing to overriding reasons relating to the public interest.

The public procurement fine may not exceed ten per cent of the value of the contract in question and the maximum charge that can be imposed is SEK 10m. When calculating the amount of this administrative fine, special consideration should be given to how serious the violation is. No fine shall be charged in minor cases and the fine may be waived in exceptional circumstances.

In contrast to an action for ineffectiveness, a public procurement fine may be imposed in the case of an illegal award of a contract not requiring prior contract notice even of the contracting authority has conducted voluntary ex ante transparency.

Visit the Swedish Competition Authority's website

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