5.8.2008
News

Possibility of settlement in case of cartels

Commission Regulation No. 622/2008 dated 30 June 2008 / (Official Bulletin No. L 171), which amends Regulation No. 773/2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty, introduces a procedure for settlement applicable should parties be prepared to admit their participation in a cartel and accept liability.

This procedure may prove to be practical in cases where the Commission has evidence in the matter in question and the parties are able to envisage the Commission’s contemplated conclusions, including the amount of the possible penalty. The Commission as an investigating authority, however, does not negotiate on the issue of infringement of the right and the corresponding sanction for such conduct, but it can reward cooperation on speedy settlement of the event by reducing the penalty by 10% (Commission Notice on the conduct of settlement procedures in view of the adoption of Decisions pursuant to Article 7 and Article 23 of Council Regulation No 1/2003 in cartel cases, dated 2 July 2008, Official Bulletin No. C167). These simplified proceedings provide a faster and more efficient resolution of cartel cases. Reduction of penalty may be granted cumulatively with leniency reward provided conditions of Leniency notice are fulfilled (Official Bulletin No. C 298 of 8 December 2006). There is no claim to settlement. The selection of cases suitable for review of the interest of the parties in settlement is under the powers of the Commission, as well as termination of negotiations on settlement at any time during the proceedings, whether entirely or only with one of the parties. Of course such procedure may not be imposed on the parties as well, but a written application must always precede in the form of a proposal for settlement. In this specific process, where clear and unambiguous recognition of liability for illegal conduct exists, the enterprises in question have the right to express their standpoints on the accuracy and relevance of evidence, objections and other facts submitted by the Commission. After a settlement is made, the right of appeal to the court of first instance is also preserved.

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