Competition Law and Bid-Rigging Detection Technologies

1. Introduction

Bid-rigging or collusive tendering occurs when competitors that should independently compete for a contract coordinate their bidding behaviour instead of competing on price, quality, innovation, delivery conditions, or other competitive parameters. It is one of the clearest forms of anti-competitive conduct because public or private purchasers may pay more or receive inferior contractual terms.

Modern competition enforcement increasingly combines traditional investigative techniques with bid-rigging detection technologies. These technologies use procurement databases, statistical screening, network analysis, machine learning, anomaly detection, text analysis and other computational techniques to identify tender patterns that may warrant investigation.

Technology does not itself establish an infringement. A suspicious statistical pattern is generally a screening signal requiring further factual and legal investigation.

2. Legal Framework

A. Indian Competition Law