Collusion in the Belgian Newspaper Distribution Sector

The Belgian competition authority has concluded its formal inquiry into systemic bid-rigging and horizontal agreements within the public procurement process for newspaper distribution services. The investigation targeted a concerted effort to bypass competitive tender protocols for the 2023–2027 concession period.

Four primary market participants were identified as architects of the collusive scheme:

Bpost: The national postal operator and incumbent distributor.
DPG Media: A dominant media publisher within the Benelux region.
Mediahuis: A major publisher and key stakeholder in the Belgian press landscape.
PPP: A private distribution firm and the primary commercial competitor to Bpost.

The investigative findings confirm that the core objective of the collusive agreement was a pre-emptive market-sharing arrangement designed to ensure Bpost remained the sole bidder for the 2023–2027 newspaper distribution concession, thereby insulating the incumbent from competitive pressure and securing its dominance through state-sanctioned contracts.

Mechanics of the Collusive Agreement

The entities involved executed a sophisticated bid-suppression strategy to circumvent the competitive requirements of the public tender. The mechanics of the agreement centered on a horizontal arrangement between Bpost and its only viable competitor, PPP. By securing a commitment from PPP to abstain from submitting a bid, the cartel effectively orchestrated a market foreclosure, leaving Bpost as the solitary applicant for the lucrative concession.

The publishers, DPG Media and Mediahuis, acted as facilitators and beneficiaries of this non-competitive environment.

Their specific roles in the market distortion included:

Facilitation of Bid Suppression: Coordinating with distributors to ensure PPP did not participate in the 2023–2027 tender process.
Horizontal Coordination: Engaging in direct dialogue to stabilize the distribution market in favor of the incumbent, Bpost, to prevent market volatility.
Strategic Market Foreclosure: Leveraging their position as the nation’s largest media groups to validate a single-bidder scenario, effectively neutralizing the competitive intent of the public procurement laws.

Internal Audit and Discovery

The collapse of the cartel was precipitated by Bpost’s own internal governance protocols. In 2022, a rigorous internal audit uncovered substantial evidence of malpractice and antitrust violations related to the concession tender. The fallout from these discoveries resulted in immediate leadership turnover, most notably the departure of Bpost’s then-CEO, Dirk Tirez.

Recognizing the imminent legal risk, Bpost management made the strategic decision to self-report the findings to the Belgian competition regulator. This proactive disclosure was a calculated legal maneuver to trigger the regulator’s leniency program. By being the first to report the bid-rigging scheme, Bpost secured full immunity from administrative fines, a critical move in mitigating the firm’s financial and legal exposure before other cartel members could seek similar protection.

Regulatory Findings and Financial Penalties

The Belgian competition regulator established clear liability for price-rigging and market manipulation across all involved parties. While the evidence supported high-level collusion, the final financial sanctions were bifurcated based on the degree of cooperation and the timing of leniency applications.

Corporate Responses and Remedial Actions

Following the regulator’s final decision, each involved entity issued formal statements addressing the breach of competition law and outlining their respective paths toward compliance.

Bpost

The national operator acknowledged that the regulator’s findings were consistent with the 2022 internal review that originally triggered the probe. Bpost has emphasized a total overhaul of its internal compliance framework, implementing stricter oversight of public procurement engagements to prevent a recurrence of such malpractice.

DPG Media

DPG Media accepted the regulator’s decision without appeal. The publisher has since institutionalized new training programs focused on competition law and has reportedly strengthened its internal reporting procedures to ensure all future commercial negotiations adhere to strict antitrust standards.

Mediahuis

Admitting to what it characterized as a “judicial error,” Mediahuis accepted full responsibility for its role in the horizontal agreement. The organization has publicly committed to a culture of transparency and stated that it has revamped its legal department to provide better oversight of distribution contracts.

PPP

In a paradoxical shift, PPP settled with the authorities and expressed its support for the total abolition of the concession system. Despite being a participant in the original agreement to suppress competition, PPP now advocates for a transition to “fair and competitive market forces,” positioning itself as a challenger in the newly deregulated environment.

Sectoral Economic Impact and Market Consequences

The investigation has resulted in a paradigm shift for the Belgian media sector. In response to the uncovered corruption, the Belgian government abandoned the state-awarded concession system entirely. This has moved the industry from a regulated, state-subsidized monopoly to an unregulated commercial environment.

Publishers are now forced to negotiate individual commercial terms with Bpost and PPP. This loss of state-backed price stability has led to a sharp increase in operational costs. Prosecutor General Damien Gerard articulated the severity of this transition:

“This has caused the price of distribution services to increase sharply, with an enormous impact on the profitability of the written press in Belgium.”

The move to individual bargaining has effectively ended the era of predictable distribution costs, introducing significant financial volatility into a sector already struggling with declining print revenues.

Conclusion

The dismantling of the newspaper distribution cartel marks a watershed moment for Belgian antitrust enforcement. The transition from a state-subsidized concession model to a purely commercial, individual negotiation framework has introduced overdue, albeit painful, market corrections. Ultimately, the 2022 Bpost internal audit stands as the primary catalyst for this transformation, illustrating the critical role of robust internal compliance and the strategic efficacy of leniency programs in identifying and purging systemic market distortions.

Ref: Bpost avoids fine in Belgian newspaper distribution procurement case