Brussels, 29/09/2006 (Agence Europe) - On Friday, the European Commission adopted several draft modifications to its communication on immunity from fines and reduction of fines in cases related to cartels (communication on leniency of 2002). These modifications aim to ensure greater coherency between rules at national and European level, in order to encourage companies to report cartels, announced the spokesperson to Neelie Kroes, who has made the fight against cartels a priority of her mandate as Commissioner in charge of Competition. The Commission is therefore proposing to modify the regime set up four years ago (EUROPE 8150), whilst taking full account of the model programme of the European Competition Network (ECN), which was also launched on Friday. Eventually, she hopes to be able to create a "one-stop shop" for requests for leniency. "Effective action against cartels require heavy sanctions to punish and deter and incentives to participants to report cartels", states Neelie Kroes in a press release. She goes on to state that "my colleagues in the European Competition Network share my concern about potential shortcomings in the current system and we are joining forces to deliver a European one-stop shop model".
The communication on leniency will: (a) clearly and specifically list what information and proof must be provided by companies seeking leniency; (b) link the level of proof required to obtain immunity to the information needed by the Commission to carry out a "targeted" inspection in connection with the alleged cartel; (c) state explicitly that companies requesting leniency must disclose their participation in the cartel; (d) introduce flexibility as to the point in time at which companies must end their participation in the alleged cartel; (e) clarify the obligation for cooperation and extend the obligation not to destroy, falsify or conceal information to cover also the period when the applicant was contemplating making an application; (f) extend the obligation of cooperation to applications for a reduction in fines ; (g) state clearly that only compelling evidence will be rewarded outside the bands for reduction of fines; (h) contain a discretionary marker system, whereby an applicant's place in the queue for leniency can be protected for a limited amount of time; (i) describe the procedure to protect corporate statements and lastly (j) state that no position is taken on applications concerning prescribed infringements (observations on these proposals can be sent in, up to 27 October 2006, to the following address: http: //ec.europa.eu/comm/competition/antitrust/legislation/leniency.html).
At the same time, the directors of the national competition authorities will be making every effort to bring their programmes into line on a model programme of the ECN. This programme presents the essential elements which, according to members of the Network, should be shared by all programmes. The programme also brings in a model of a uniform, succinct application system at national level for applications for immunity in cases concerning more than three Member States (this is available in all official languages at the following address: http: //ec.europa.eu/comm/competition/index_en.html).
It is worth noting that leniency programmes allow the authorities to offer total immunity from or a reduction in the fines which would otherwise have been payable by companies taking part in the cartel, in exchange for disclosing the infringement and for cooperation in the investigation carried out by the authorities.