A second specialized investigative tool in cartel cases is the leniency programme.

This case is a good example of the use of a leniency programme when dealing with cartel cases.

In conclusion, the representatives of the JFTC enquired whether a competition authority could successfully pursue cartel investigations without a leniency programme.

Only then will there be sufficient incentive for cartel operators to break ranks and cooperate with the authorities under a leniency programme.

The representative of the United States Federal Trade Commission commented that, although a leniency programme had proved the most effective investigatory tool in cartel prosecution, the United States had prosecuted cartels successfully before it introduced a leniency programme.

A leniency programme can be a powerful anti cartel weapon, but, as is discussed below, experience has shown that it is seldom effective right away.

Some would say that no other cartel member should receive any leniency, in order to create the greatest possible incentive to be the first in the door .

Cartel operators, especially unsophisticated ones, may make public statements that betray cartel activity.

Begin to establish a leniency programme.

Cooperation on cases, confidentiality and leniency

Certainly some countries new to anti cartel enforcement do not yet have a formal leniency programme in place but, for the reasons discussed above, it seems that even those that do are unlikely to benefit immediately.

Apparently, few resulted from a leniency programme.

Evaluation of the effectiveness of leniency programmes

Leniency Programmes to Fight Hard Core Cartels (2001)

Hungary Cartel in the fertilizer industry

Mr. Alvarez, I'm going to request leniency for you.

Hungary Cartel in the fertilizer industry 8

The GVH has applied its leniency policy to the matter.

Lessons for the future how to improve anti cartel enforcement in developing countries and other countries beginning an anti cartel effort

Argentina Cartel in the medical oxygen supply market

Begin to impose strong sanctions against cartel conduct.

The infringement, carried out as part of an international cartel, was the longest operating cartel in Hungary, lasting from 1991 until 2003.

When this credibility is established, properly structured leniency programme will succeed.

After the investigation, prompted by news reports of the price increase, was underway, a fifth airline applied to the Commission for leniency under the Commission's Corporate Leniency Policy.

Complainants usually do not possess enough evidence to prove that a cartel exists, but without their initiative, many cartel prosecutions would never begin.

Perhaps the most important impediment to improved cooperation is the restrictions, again justified to some extent, against disclosure of confidential or protected information developed in the course of a competition investigation. Conversely, it has been suggested that the more international a cartel and the greater the number of jurisdictions that might punish it, the less incentive there would be for cartel participants to take advantage of national leniency programmes.

Argentina Cartel in the medical oxygen supply market 4

Previously, a cement cartel had been fined EUR 10,000,000.

Engage in international cooperation in the anti cartel effort.

A properly structured leniency programme should have at least the following elements

For most countries there is one most effective tool available to the cartel prosecutor the dawn raid, or unannounced visit to the offices of suspected cartel operators for the purpose of seizing documentary or electronic evidence of a cartel agreement.

See ICN Working Group on Cartels, Defining Hard Core Cartel Conduct Effective Institutions Effective Penalties , in Building Blocks For Effective Anti Cartel Regime, vol. 1.

As a result of the cartel, hospitals and consumers were charged high prices for the medical oxygen and the cartel members enjoyed illegally acquired high profits.

In recent years, a key obstacle to enhanced cooperation on enforcement against international cartels area has arisen from the confidentiality that is accorded under national leniency programmes to information from leniency applications.

Brazil has sharply increased its anti cartel enforcement in recent years.

Recently there has been some increase in anti cartel activity, however.

I see no reason for leniency since the money was found on your person.

Cartel cases are much more persuasive if they contain direct evidence of agreement involving the cartel participants, and evidence that the participants knew that their conduct was unlawful.

How does a robust competition culture support successful anti cartel enforcement? Educated consumers and businesspeople will be more alert to possible cartel activity and more willing to report it.

Anna s children demand that the plea bargain be voided and he be judged without leniency.

A critical component of any successful leniency programme is the credible threat of severe sanctions.

Focus initial investigative efforts on sectors where cartel conduct is most likely.

The primary purpose of sanctions in the cartel context is as a deterrent.

The harm caused by the cartel should be emphasized, and quantified, if possible.

In such a programme, the first cartel member offering to cooperate with a cartel investigation and providing evidence implicating the other members is promised forgiveness from prosecution or, in some cases, reduced sanctions.