What is the Leniency Programme

The Commission has operated a leniency programme since 1996 to allow undertakings an opportunity to admit to their wrongdoing and avoid or reduce a potentially heavy fine for competition infringements. The features of the programme are currently provided in the 2006 Notice on immunity from fines and reduction of fines in cartel cases (the “Leniency Notice”). In essence, companies that provide sufficient information about a cartel in which they have participated may receive full or partial immunity from fines.

The Leniency Notice sets out the framework for rewarding cooperation in the Commission’s investigation by undertakings which are or have been party to secret cartels affecting the Community. Although the Leniency Notice does not have binding force at law, the Court of Justice of the European Union has made it clear the the Leniency Programme creates legitimate expectations for undertakings.

Guidance clarifying the application of the Leniency Notice

Last week, the European Commission released a useful guidance document clarifying the applicability of the Leniency Notice (the “Guidance”). The Guidance provides 25 questions and answers and includes, inter alia, details on how to contact the Commission to discuss a potential application on a ‘no names’ basis, additional protections and benefits enjoyed by leniency applicants and how the system works in practice.

Economou & Co LLC’s comment

The Leniency Notice and the above Guidance confirm the willingness of the European Commission to tackle effectively the formation of cartels in the EU by providing transparency and predictability to intended applicants.