Brussels (Brussels Morning) – Three major security firms, Securitas, G4S, and Seris, were found guilty of cartel practices spanning 2008 to 2020. They fixed minimum hourly rates, allocated tenders, and agreed not to poach each other’s employees.Â
Which security firms were involved in cartel agreements?
Three groups- Securitas, G4S and Seris – have been found culpable of cartel agreements, from 2008 to 2020. The Belgian Competition Authority imposed fines totalling over 47 million euros, with Securitas receiving immunity and G4S and Seris facing reduced fines
What were the main cartel practices identified?
They used minimum hourly rates for their security guards. In the security sector, the rates of the guards represent the largest costs. They also made agreements on the allocation of tenders and contracts. And there were also agreements not to recruit employees from each other.
How did the Belgian Competition Authority respond to this case?
According to the Belgian Competition Authority, these are “serious and long-term cartel agreements” to the detriment of customers in the security sector and the entire economy.
What were the financial penalties imposed ?
The fines are also corresponding: more than 47 million euros. Securitas is exempted from the fine under a leniency scheme because it was the first to hand over evidence and helped with the investigation. G4S is granted a reduced fine of 35.9 million euros under this leniency scheme.Â
This is almost equal to the record fine that several supermarkets received from the BMA in 2015 for price agreements with suppliers. Seris is granted a reduced fine of 11.2 million euros. The three companies acknowledge their participation in the cartel and have accepted a settlement.
Who resigned as a result of the cartel case?
It involved large surveillance and security contracts in Belgium. There are contracts with Defense and also with NATO. The case came to light in February 2020. This led to the resignation of Jean-Paul Van Avermaet as CEO of bpost in March 2021. Before he started working at bpost, Van Avermaet was CEO of G4S. Due to the cartel case at G4S, he lost the support of the board of directors at the postal company.
What legal challenges does Jean-Paul Van Avermaet face?
Incidentally, there is still a lawsuit pending in the United States against Van Avermaet for the price agreements when he was CEO of G4S. This is because American customers of the company in Belgium were disadvantaged. The case against him is scheduled for March 24, 2025, in the role of the federal district court in Washington DC.
Finally, the BMA states that eleven natural persons have requested and obtained immunity from prosecution. There is still a procedure pending with the BMA against one person. This is said to be Van Avermaet. The former G4S CEO is said not to have requested immunity from prosecution.
In response, Securitas confirmed the settlement with the competition authority and pointed out that it had been granted immunity by bringing the matter to the attention of the authority. “The matter was fully remedied years ago and we continue to work diligently to uphold our standards and values,” Securitas said.
