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Bpost avoids fine in Belgian newspaper distribution procurement case (updated)

Adds PPP in para 1,9; adds company statements in para 5, 6, 7, 8

By Jakob Van Calster

Feb 13 (Reuters) - Belgian postal operator Bpost BPOST.BR, publishers DPG Media and Mediahuis, and distributor PPP have been held liable for rigging a public procurement for newspaper distribution, the Belgian competition watchdog said on Friday.

Bpost, which had alerted the authorities after an 2022 internal audit uncovered signs of malpractice, will receive full immunity from fines under a leniency programme, the regulator said. The investigation ultimately cost the postal group's then-CEO, Dirk Tirez, his job.

"The common objective of the companies in question was to ensure that bpost ... would be awarded the 2023-2027 newspaper distribution concession," the regulator said in a press release. "Together, they agreed that bpost’s competitor PPP would not submit an offer (which) left bpost as the only bidder."

Mediahuis and DPG Media, which between them control the widest‑circulating newspapers in the Benelux region, were fined 7.79 million euros ($9.36 million) and 3.79 million euros, respectively, reduced under the same leniency programme.

Bpost said in an emailed statement that the watchdog's findings aligned with its own 2022 internal review. It said it had since taken corrective measures and strengthened its compliance processes.

DPG Media said that it accepted the decision and has also strengthened internal procedures, including new training programmes to prevent any repeat of the issues.

PPP said that it had settled with the competition authority and welcomed the abolition of the concession, which it argued would allow "fair and competitive market forces".

Mediahuis said in an press release that it had made a judicial error and accepted its responsibility.

The concession was abandoned by the Belgian government after the investigation, forcing companies to negotiate commercial terms separately with bpost and PPP.

"This has caused the price of distribution services to increase sharply, with an enormous impact on the profitability of the written press in Belgium," prosecutor General Damien Gerard told Reuters.

($1 = 0.8430 euros)

 (Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak and Matt Scuffham)

 ((jakob.vancalster@thomsonreuters.com))

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