Companies fined for manipulating newspaper concession tender
The Belgian Competition Authority (BCA) has convicted bpost, DPG Media, Mediahuis and PPP, along with two individuals, for falsifying the tender procedure for the 2023–2027 newspaper distribution concession. The authority imposed total fines of approximately 11.9 million euros on the companies involved.
The case relates to the long-running controversy surrounding the federal newspaper concession, which was ultimately shelved in 2022. The BCA has now confirmed that the tender process was manipulated. According to the authority, bpost, PPP and the publishers DPG Media and Mediahuis shared the common objective of ensuring the contract would be awarded to bpost.
Agreement to sideline competition
The four companies agreed that PPP, a competitor of bpost, would not submit a bid in exchange for additional newspaper volumes to be distributed by DPG Media and Mediahuis. PPP’s withdrawal left bpost as the sole candidate, effectively eliminating competition and breaching the prohibition on anti-competitive agreements.
The companies and individuals involved acknowledged their participation in the infringement and accepted a settlement proposed by the authority’s auditors.
Fines and reductions
Because bpost itself alerted the BCA to the arrangement, it received full immunity from a fine under the leniency programme.
DPG Media and Mediahuis were fined approximately 3.787 million euros and 7.788 million euros, respectively. PPP received a fine of 323.486 euros.
The amounts reflect significant reductions. DPG Media and Mediahuis received 50 per cent and 40 per cent reductions, respectively, for cooperating with the investigation and admitting certain infringements. Both publishers and PPP also benefited from a statutory 10 per cent reduction for agreeing to the settlement.
For the first time, the BCA also fined individuals for direct involvement in a competition law infringement. Two former bpost employees received a combined fine of 6,300 euros. This was reduced by 50 per cent, “as it is the first time the BCA has imposed a fine on individuals”, and by a further 10 per cent under the settlement procedure. Thirteen other individuals were granted immunity in exchange for cooperation.
“Bpost, PPP, and the publishers involved have been definitively held responsible and fined by the BCA for manipulating the award of the newspaper distribution concession. This concession has since been revoked, which has had a significant impact on the press sector in our country,” said BCA Auditor General Damien Gerard.
“The decision is also an important signal that individuals can be held responsible for competition law infringements, in addition to the companies they work for. The individuals in question were employed by bpost at the time of the infringement. They actively contributed to the manipulation of the press concession allocation,” he added.
Based on documents provided by bpost, the authority conducted a search of DPG Media’s premises, enabling it to expand the investigation. DPG Media, Mediahuis and bpost cooperated, and together with PPP ultimately reached a settlement admitting culpability. Mediahuis received a higher fine than DPG Media due to its larger newspaper distribution volumes.
Political fallout and end of subsidies
The matter dominated headlines at the time. Following the revelations, bpost launched an internal investigation. Then chief executive Dirk Tirez, temporarily stepped aside and later left the company by mutual agreement. Bpost also ended its collaboration with two other employees at the end of 2022.
In a subsequent tender, with the contract value reduced from 175 million euros to 125 million euros, PPP emerged as the preferred bidder, securing tens of millions of euros in subsidies. However, at the end of 2023, the federal government decided not to award a new long-term newspaper distribution contract. As a result, the state will no longer subsidise press distribution.
The expiring contract was extended for six months, during which bpost continued to receive a multi-million-euro subsidy. PPP initially challenged this extension, but the two companies later reached an agreement to avoid legal proceedings.
In 2024, bpost reached a new agreement on newspaper delivery in Flanders. Most customer volumes will gradually be transferred to subsidiary AMP, with the remainder going to PPP. A transitional arrangement in Wallonia has been extended, but bpost will permanently cease newspaper distribution there on 1 May 2027. After that date, publishers will take over distribution themselves, as previously announced.
© PHOTO BELPRESS
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