Press release 28/2022

November 30, 2022

 

The AdC has sent a Statement of Objections to Affidea Group, Lifefocus Group and GS24 (commercially known as "Lifeplus Group") for participating in a cartel in public tenders for the provision of teleradiology services to hospitals and hospital centers in Portugal.

The investigation

The AdC ordered the opening of an investigation in September 2021, and carried out unannounced inspections during September and October of the same year.
The AdC's investigation revealed that Affidea Group, Lifefocus Group and GS24 - together with two other companies, which have already been subject to a final sanctioning decision in a settlement procedure - implemented an agreement and/or concerted practice, under which they jointly defined which companies would submit the winning bids in public tenders for the provision of teleradiology services.
Through these contacts, the companies involved in the cartel would disclose to each other the prices they would bid in the future, to ensure that the best bid would be that of the company they defined. They also agreed that others would be excluded as a result of submitting bids that failed to meet eliminatory tender criteria.
The contacts that were established allowed the companies involved in the cartel to share among themselves the national market for the provision of teleradiology services in public procurement procedures.
On the other hand, the companies jointly implemented strategies aimed at a general price increase in the market under consideration.

Teleradiology services

Teleradiology allows diagnostic tests to be carried out in a health care facility without the physical presence of a radiologist or neuroradiologist. The medical specialists receive the images and results of the diagnostic tests performed at the health care facility remotely afterwards, interpret them, and draw up a report, which they then transmit to the health care facility concerned.
These services are provided by companies to entities of the National Healthcare System by means of public tenders. The use of teleradiology is especially relevant in cases where healthcare facilities do not have teams that include radiology and/or neuroradiology specialists to meet local needs, making it possible to make up for such shortfalls and help interpret complex diagnoses.

Priority to combatting anti-competitive agreements

The combat against cartels, particularly in public procurement, is a high priority for the AdC, given the damage they invariably cause to families and companies, forcing them to pay higher prices and reducing the quality and diversity of the goods and services available to them.

The violation of competition rules not only reduces the welfare of consumers, but also harms the competitiveness of companies, penalizing the economy.

The case

The AdC has concluded the case in advance in relation to two other companies due to the cooperation of these, which decided to participate in a settlement procedure, admitting their participation in the cartel and renouncing to litigate in court, and were subject to the application of sanctions.
Regarding Affidea Group, Lifefocus Group and GS24, the AdC notes that the issuing of a Statement of Objections does not determine the outcome of the investigation. At this stage of the process, these three companies are given the opportunity to exercise their right to be heard and to defend themselves in relation to the alleged infringement they are accused of and the sanction or sanctions they may incur.
For more information on the case, please visit the AdC’s website.