In line with paragraph 26a of the commission notice on the cooperation between the commission and the courts of the eu member states in the application of articles 101 and 102 of the treaty, the commission will not at any time transmit leniency corporate statements to national courts for use in actions for damages for breaches of those treaty provisions 5. In a system of parallel competences between the european commission hereinafter the commission and national competition authorities hereinafter ncas, an application for leniency1 to one authority is not to be considered as an application for leniency to another. Jephcott, the european commissions new leniency notice whistling the right tune, 23 8 eclr 37887 2002. Aug 12, 2016 a further leniency notice was implemented in 2002. In any event, the applicant did not cooperate with the commission under the 2002 leniency notice. The commission will apply the leniency rules in line with the conditions set out in the. In many jurisdictions, including austria, where the leniency programme was introduced in the amended competition act in 2005 entering into force on 1st january 2006 1, leniency programmes have proven to be highly effective and successful tools to detect infringements of cartel law. In 2006, the commission notice on immunity from fines and reduction of fines in cartel cases, the 2006 leniency notice, amended the 2002 leniency notice by dropping the requirement for cartel. Commission notice on immunity from fines and reduction of fines in cartel cases text with eea relevance 2006 c 29811 i. What is an administrative proceeding pertaining to tax administration within the meaning of section 6103h4. Nov 19, 2008 leniency is available even after the division has received information about the activity. In the united states, second and subsequent applicants cannot qualify for reduced sanctions under the leniency programme, but they can enter into plea agreements with the department of justice that reward them for their cooperation. Pdf the use of leniency programme in detecting cartels in.
However, the european commission guidelines are vague in terms of the factors that influence the granting and scale of leniency related penalty reductions. Apr 27, 2006 policy, leniency means not charging such an individual criminally for the activity being reported. Leniency notice of 1996 2002ln leniency notice of 2002 2006ln leniency notice of 2006 aa antitrust authorities doj the department of justice ec european commission eclp european commissions. Citigroup also benefited from full immunity for its participation in one bilateral infringement. Commission notice on immunity from fines and reduction of fines in cartel cases. The 2006 leniency notice sets out the current eu leniency policy. Both the 2002 and the 2006 notices have been highly successful. Ecn model leniency programme as revised in november 2012 i. The interaction of leniency programmes and actions for damages. Introduction 1 this notice sets out the framework for rewarding cooperation in the commission investigation by undertakings which are or have been party to secret cartels affecting the community.
The european commissions new cartel settlement procedure. R 9 the leniency programmes in the nordic countries provide for immunity and reduction of. The eu leniency programme, first introduced formally by the 1996 notice on the nonimposition or reduction of fines in cartel cases the 1996 notice, and lastly redrafted in the 2006 leniency notice, is the most effective investigative tool in the fight against cartels, the most serious infringements of article 101 of the treaty on the functioning of the european union tfeu. Commission notice on immunity from fines and reduction. Communication from the commission amendments to the commission notice on immunity from fines and reduction of fines in cartel cases official journal c 256, 5. The procedure for corporate statements will be applicable to all new and ongoing leniency applications as of the date of publication of the amended 2002 leniency notice in the official journal. In 2002, only 4 see points 2225 of the model programme and paragraph 14 of the commission notice on cooperation within the network of competition authorities the network notice, oj c 101 of 27.
Commission notice on immunity from fines and reduction of. Frequently asked questions about the antitrust divisions. In australia, leniency applications are permitted until the accc has received written legal advice that it has su. In in the united states, second and subsequent applicants cannot qualify for reduced sanctions. Pdf the use of leniency programme in detecting cartels. Leniency programmes are available to the undertakings that participated in a cartel and want to come forward with evidence of such cartel in exchange for a reduction of nes. Commission notice on immunity from fines and reduction of fines in cartel cases text with eea relevance commission notice on immunity from fines and reduction of fines in cartel cases text with eea relevance oj c 298, 8. A vital tool for detecting cartels leniency incentivises the selfreporting of cartel conduct with the prospect of immunity from. Competition cartels leniency legislation european commission. Pm department of the treasury internal revenue service office of chief counsel notice cc 2006 003 october 25, 2005 subject.
The eu leniency programme and recidivism springerlink. On 8 december 2006, the commission notice on immunity from fines and reduction. Jun 15, 2016 2006 leniency notice, as note 5 above, points 23 and 24. Cartel settlements in the us and eu department of justice. The only legal basis for the eu leniency program is the commissions notice on immunity from fines and reduction of fines in cartel cases6 additional guidance can be found in the. Applications filed after this date by those wishing to take advantage of the leniency programme shall be exclusively dealt with according to the current regulation. The differences included a lower standard of evidence and additionally, immunity could be extended to companies which were already under investigation. Leniency before an investigation has begun type a leniency leniency will be granted to a corporation reporting illegal antitrust activity before. Pdf leniency theory and complex realities with ali.
In the uk, a leniency programme was adopted under the competition act 1998. See commission notice on immunity from fines and reduction of fines in cartel cases, 2006 o. Eurlex2 yokohama applied for immunity under the commissions 2006 leniency notice 1. Gale, the leniency regime and the fight against cartels by the directorate general for competition, 25 11 c ompany l awyer 324330 2004. This regulation comes into force on 15 march 2006 and replaces notice no. The leniency notice allows the commission to grant a marker to an immunity applicant, in order to secure that applicants position in the leniency queue during the 1 commission notice on immunity from fines and reduction of fines in cartel cases oj c 298 of 8 december. An empirical assessment of the european leniency notice.
It builds on the achievements of the eu 2002 leniency notice which replaced the less successful 1996 leniency notice. A leniency programme was introduced in italy by law 2871990 article 15, 2 bis as amended by law decree no. C 298 hereinafter new leniency notice constituting the most recent enactment of the leniency program. The current eu leniency policy is set out in the eu 2006 leniency notice. It introduced a marker system, making it easier for leniency applicants to secure their place in the queue in lieu of providing more detailed evidence. Leniency in eu cartel cases lexispsl, practical guidance for. Eleven cases even have published start dates that followed the important reforms made to the european commissions leniency notice in 2002. C 298 hereinafter new leniency notice constituting the. In december 2006, the italian competition authority im or the authority issued and submitted for public comment the draft of a new leniency programme that has been officially adopted with minor amendments through resolution of 15 february 2007 the notice. Pdf since 1996, the european commission has been operating a leniency. The eu leniency program and us civil discovery rules.
Until the end of 2006, italy had no leniency policy in place. Leniency programmes and protection of confidentiality oxford. To that end, the ec new notice, which came into force on. However, not all such undertakings may bene t from these programmes. Carle, the new leniency notice, 23 6 eclr 265272 2002. A critical analysis of the procedural fairness of the leniency instrument. Leniency programs leniency programs reduce the fines for cartel members that bring evidence to the antitrust. The 2002 leniency notice is therefore not affected and continues to apply.
The main objective of the revisions made in the 2006 leniency notice was to provide more guidance to wouldbe immunity and leniency applicants by increasing the predictability and transparency of the leniency procedure as a whole and thereby to make exposing a cartel increasingly attractive for cartel participants. Since the european commission adopted in february 2002 a new leniency policy, some of the information in the 2001 report relating to the ec policy is no longer accurate. Leniency programmes and protection of confidentiality. Leniency programme decision of the hellenic competition commission no. Requirements for leniency for individuals leniency will be granted to an individual reporting illegal antitrust activity before an investigation has begun, if the following three conditions are met. Comments the deadline for submitting comments regarding this proposed amendment of the leniency notice is monday 20 march 2006.
Dec 04, 20 the commission opened proceedings in february 20. Yokohama applied for immunity under the commissions 2006 leniency notice 1. The competition commissioner has been granted the following empowerments in relation to the application of the 2002 leniency notice. Commission adopts revised leniency notice to reward companies that report cartels the european commission has taken another important step to uncover and put an end to hardcore cartels by adopting a revised notice on immunity from fines and reduction of fines in cartel cases the leniency notice. In the united states, second and subsequent applicants cannot qualify for reduced sanctions under the. See, for example, points 2526 of the ec 2006 leniency notice, hammond, p. Communication from the commission amendments to the commission notice on immunity from fines and reduction of.
This practice note sets out the commissions approach towards leniency and immunity and the process for applicants outlined in the 2006 leniency notice. Commission notice on immunity from fines and reduction of fines in cartel cases text with eea relevance. The eu leniency programme aims to encourage the dissolution of existing cartels and the deterrence of future cartels, through selfreporting andor significant cooperation by cartel members during an investigation. Commission leniency notice commission notice on immunity from fines and reduction of fines in cartel cases oj c 45, 19. The ecn model programme concerns secret cartels, in. European commission guidance for leniency applicants on.
Under the mlp and the commissions 2006 notice, immunity or leniency is not available to. Report on assessment of the state of convergence annex 1. Disclosure of third party tax information in tax shelter matters cancel date. According to the 2006 commission notice on immunity from fines and reduction of fines in cartel cases the leniency notice, oj c 298, 8. Detailed below are the criteria for each type of leniency. There is no specific leniency act at the european union level. The particular objectives of the new eu leniency notice were to provide more guidance. Ubs received full immunity under the commissions 2006 leniency notice for revealing to the commission the existence of the infringements. Jun 28, 2006 the leniency notice serves a different purpose, which is to reward companies which, in cartel cases, cooperate with the commission, thereby justifying an immunity of fine or reduction of the fine set in accordance with the guidelines adopted today. Leniency theory and complex realities centre for competition. The policy was first set out in a notice on the nonimposition or reduction of fines adopted by the authority in february 2007 comunicazione. In a system of parallel competences between the european commission hereinafter the commission and national competition authorities.
891 1050 18 1198 1772 792 1690 763 749 1425 785 1060 879 1273 126 1768 367 1016 219 1085 515 655 723 377 1762 1657 217 1162 1705 1146 400 508 1392 886 1326 357