Cartel settlements:

Report to the ICN Annual Conference – Kyoto , Japan , April 2008 – International Competition Network

Abstract

The use of settlements has become a recent hot topic among anti-cartel enforcers. Settlements are regarded by many as
a “win-win” anti-cartel enforcement tool that can provide a multitude of benefits to enforcers as well as to settling cartel
participants. Among the many benefits that will be discussed in this paper, cartel settlements allow enforcers to free critical resources, secure valuable cooperation and create momentum in their investigations, while settling cartel participants can receive a reduction in their penalty as well as certainty and finality through the more expeditious resolution of charges against them. Settlements may be utilized by cartel participants that were not first in the door, or who are otherwise ineligible for full immunity or leniency, therefore, they provide an important vehicle for resolving charges against those who have lost the leniency race. There is strong interest among ICN Cartel Working Group members in the topic of settlements. Accordingly, the ICN Cartel Working Group canvassed its members by sending a questionnaire regarding the use of settlements in cartel matters. Of the twenty responses received, nine jurisdictions indicated that they currently have some type of cartel settlement system in place and four jurisdictions responded that they are currently contemplating such systems 1. The information provided by responding ICN member jurisdictions 2 provided valuable insights into the types of cartel settlement systems currently in place and the issues faced by anti-cartel enforcers in designing and implementing cartel settlement systems.