Procurement Criminal Law 2026 – Corruption and Criminal Liability in Procurement

Definition: Procurement criminal law designates the body of criminal and regulatory-offence provisions that apply to unlawful conduct in connection with public procurement procedures – in particular to corruption, bid-rigging, breach of trust and fraud.

Last updated: January 2026 · Legal status: Criminal Code (Austria/Germany), UWG, GWB, competition law

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What is procurement criminal law?

Procurement criminal law is not a self-standing area of law but the intersection between general criminal law and public procurement law. Wherever criminal offences are committed in the procurement procedure – by bidders, contracting authorities or third parties – criminal sanctions apply. The importance of procurement criminal law has risen sharply in recent years as a result of tougher compliance requirements and the introduction of the competition register.

Relevant criminal offences

The conduct that is relevant under criminal law in procurement can be grouped into three main categories:

Corruption offences

Corruption in procurement includes bribery (§ 307 German Criminal Code, §§ 304 et seq. Austrian Criminal Code) and acceptance of bribes (§ 332 Austrian Criminal Code, § 299 German Criminal Code). Typical cases include payments of money or in-kind benefits to staff of the procurement office in order to obtain an informational advantage or favourable evaluation. The breach of official secrecy through disclosure of confidential tender information can also constitute an offence.

Bid-rigging

Agreements between bidders on prices, territories or the allocation of contracts constitute a standalone criminal offence under § 298 of the German Criminal Code. The offence of "bid-rigging" is fulfilled where bidders cooperate unlawfully to distort competition. In Austria, such agreements are sanctioned primarily under competition law in the Cartel Act (KartG), but can also fall under fraud (§ 146 Austrian Criminal Code).

Breach of trust and fraud

Staff of public contracting authorities who abuse their powers and cause damage to the public contracting authority through a procurement-law-infringing decision (e.g. an overpriced direct award to an acquaintance) may be liable for breach of trust (§ 153 Austrian Criminal Code, § 266 German Criminal Code). Bidders who submit false suitability evidence may be guilty of fraud.

Competition register

Since 2021, in Germany, final convictions for procurement-relevant criminal offences are recorded in the competition register, which can lead to exclusion from procurement procedures. A comparable system exists in Austria via the criminal record and the exclusion grounds under § 68 BVergG 2018.

Compliance and prevention

Undertakings and public contracting authorities are increasingly investing in compliance systems in order to minimise procurement-criminal-law risks. These include internal policies, the four-eyes principle, whistleblower systems and regular training.

FAQ

Can an undertaking be excluded from procedures for procurement corruption? Yes. Final convictions for corruption, fraud or bid-rigging trigger mandatory grounds of exclusion (§ 68 BVergG 2018, § 123 GWB).

What are the penalties for bid-rigging in Germany? Under § 298 of the German Criminal Code, a custodial sentence of up to five years or a fine may be imposed. Additional fines under the GWB may also be imposed.

Does procurement criminal law also apply to subcontractors? Yes, to the extent that subcontractors are involved in procurement-relevant agreements or submit false declarations.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.