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Cartels

Leniency

Trailer: ICN Curriculum Project -
Learning module on leniency


Read about this video and watch the full film (72:24).

The penalties for companies that breach the competition rules can be very severe. For cartel infringements, the largest fine imposed on a single company is over €896 million; the largest fine imposed on all members of a single cartel is over €1,3 billion. In June 2006 the Commission revised its guidelines for setting fines in competition cases. These revised guidelines will often lead to fines for cartels being significantly higher than previously.

However, companies that have participated in illegal cartels have a limited opportunity to avoid or reduce a fine. The Commission operates a leniency policy whereby companies that provide information about a cartel in which they participated might receive full or partial immunity from fines.


About the leniency policy

Along with the other detection and investigation tools at the Commission’s disposal, the leniency policy proves very successful in fighting cartels.

In essence, the leniency policy offers companies involved in a cartel - which self-report and hand over evidence - either total immunity from fines or a reduction of fines which the Commission would have otherwise imposed on them. It also benefits the Commission, allowing it not only to pierce the cloak of secrecy in which cartels operate but also to obtain insider evidence of the cartel infringement. The leniency policy also has a very deterrent effect on cartel formation and it destabilizes the operation of existing cartels as it seeds distrust and suspicion among cartel members.

In order to obtain total immunity under the leniency policy, a company which participated in a cartel must be the first one to inform the Commission of an undetected cartel by providing sufficient information to allow the Commission to launch an inspection at the premises of the companies allegedly involved in the cartel. If the Commission is already in possession of enough information to launch an inspection or has already undertaken one, the company must provide evidence that enables the Commission to prove the cartel infringement. In all cases, the company must also fully cooperate with the Commission throughout its procedure, provide it with all evidence in its possession and put an end to the infringement immediately. The cooperation with the Commission implies that the existence and the content of the application cannot be disclosed to any other company. The company may not benefit from immunity if it took steps to coerce other undertakings to participate in the cartel.

Companies which do not qualify for immunity may benefit from a reduction of fines if they provide evidence that represents "significant added value" to that already in the Commission’s possession and have terminated their participation in the cartel. Evidence is considered to be of a "significant added value" for the Commission when it reinforces its ability to prove the infringement. The first company to meet these conditions is granted 30 to 50% reduction, the second 20 to 30% and subsequent companies up to 20%.

The Commission considers that any statement submitted to it within the context of its leniency policy forms part of the Commission’s file and may therefore not be disclosed or used for any other purpose than the Commission’s own cartel proceedings.


Leniency applications

In order to benefit from the Notice, companies can approach the Commission directly or through a legal adviser. To apply for leniency please contact the Commission only through the following dedicated fax number:

Leniency fax: +32 2 299.45.85

The use of this fax ensures that the precise time and date of the contact is duly recorded and that the information is treated with the utmost confidentiality within the Commission. Before sending the actual submission by fax, however, it is advisable to seek assistance from one of the Commission officials involved in leniency by calling the following dedicated telephone numbers:

Telephone numbers: +32 2 298.41.90 or +32 2 298.41.91

Because of the need for confidentiality of leniency applications, companies are requested not to send any application to the Commission by any other channel than the leniency fax.

Please note that these telephone numbers are only to be used for leniency applications. Given the importance of keeping these lines clear so that companies can make their applications promptly, no other queries will be answered.

The telephones are monitored from 09.00 to 17.00 on weekdays. Outside of these times, please use the leniency fax.

Oral statements procedure

Important information on the organisation and procedure of oral statements can be found in this document. Read this document before making your first oral statement.

Waivers of confidentiality

The Commission Leniency Notice sets a requirement for a leniency applicant to inform the Commission about any other applications it has filed or intends to file with other competition authorities. The purpose of this information is to enable the Commission to coordinate its investigation with other competition authorities. Save for information exchanges within the European Competition Network, which are governed by specific rules (see Regulation 1/2003 and the Commission Notice on cooperation within the Network of Competition Authorities), the Commission will only discuss information received under the Leniency Notice with other competition authorities pursuant to a confidentiality waiver provided by the leniency applicant.

In order to facilitate the provision of waivers and to increase their uniformity worldwide, the International Competition Network (ICN) has adopted Waiver Templates and an Explanatory Note (2014). DG Competition has fully endorsed this guidance and accordingly requests that leniency applicants provide it with a full waiver of confidentiality using the ICN template. The applicants should give the waiver immediately when making their first submission under the Commission Leniency Notice.

The ICN waiver template does not preclude exchange of documents received from leniency applicants between the competition authorities. However, DG Competition will generally not exchange such documents with the competition authorities listed in the waiver. It is only exceptionally, and pursuant to the applicant's prior consent, that such exchanges could take place.

Applicable legislation and procedures

Go to the legislation pages


Video: ICN Curriculum Project - Learning module on leniency

The European Commission has produced this video for the International Competition Network as part of the virtual university curriculum on competition law and practice for competition agency officials.

The video features officials from competition authorities from around the world speaking about all aspects of leniency programmes: immunity and leniency applications, administrative, civil and criminal sanctions, immunity and reductions in fines, provision of corporate statements, and cooperation among competition agencies.

Hypothetical cartel situations are also portrayed in several action scenes.


Download video:
Film (72:24) - LOW RES (format MP4, codec H264), HIGH RES (format MPG, codec MPEG-2)
Trailer (04:54) - LOW RES (format MP4, codec H264), HIGH RES (format MPG, codec MPEG-2)

See further training materials on the International Competition Network website.