UK Uses AI to Detect Bid-Rigging in Public Contracts

Combating Anti-Competitive Practices with Artificial Intelligence

The United Kingdom's competition authority is currently managing numerous challenges related to the expanding influence of Big Tech. However, it is also addressing a distinct form of anti-competitive behavior domestically, leveraging AI as a key tool in this effort.

AI-Powered Bid-Rigging Detection

According to a recent report by the Financial Times, the Competition and Markets Authority (CMA) is initiating a pilot program to combat “bid-rigging” within public procurement contracts. This program utilizes AI to analyze extensive datasets.

The objective is to pinpoint instances where companies competing for contracts may have engaged in collusion to manipulate the bidding process and artificially increase expenses.

CMA's Enhanced Capabilities

“Procurement markets are known to be particularly vulnerable to bid-rigging schemes,” stated Sarah Cardell, chief executive of the CMA. “We now possess the ability to examine large volumes of bidding data, identifying irregularities and potential anti-competitive actions.”

This new capability allows for the scanning of data at a scale previously unattainable.

Recent CMA Actions

This development follows the CMA’s recent announcement of an investigation into alleged bid-rigging concerning school roofing contracts.

Last year, the CMA imposed penalties totaling £60 million ($75 million) on ten construction companies found guilty of colluding to fix contract bids.

Focus on Public Procurement

• The CMA is employing AI to detect anomalies in bidding data.
• The pilot program targets bid-rigging in public sector contracts.
• Significant fines have already been levied against companies engaging in collusive practices.