The first member of a cartel should receive complete immunity from prosecution and punishment.

In almost all countries there must be more evidence than just parallel pricing to support a cartel prosecution.

In such a programme, the first cartel member offering to cooperate with a cartel investigation and providing evidence implicating the other members is promised forgiveness from prosecution or, in some cases, reduced sanctions.

In many countries it is legally possible to sustain a cartel prosecution without evidence of direct agreement, but it is risky to try to do so.

In the last decade, the introduction and application of such programmes have increased the detection of prosecution levels of cartel activity in both developed and developing countries.

Developed countries should recognize decisions of developing country competition authorities against international cartels based in developed countries' territories and should assist in the prosecution of cartel members.

Cartel operators, especially unsophisticated ones, may make public statements that betray cartel activity.

The successful detection, investigation and prosecution of this cartel is a clear indication of the progress made by competition agencies in developing countries in eradicating these harmful cartels.

Hungary Cartel in the fertilizer industry

You know what a cartel is?

Hungary Cartel in the fertilizer industry 8

Lessons for the future how to improve anti cartel enforcement in developing countries and other countries beginning an anti cartel effort

In the Vitamins case, after reading press releases announcing the prosecution of this cartel in the United States, the Brazilian competition authorities began their investigation of the Brazilian subsidiaries of some of the firms involved.

The infringement, carried out as part of an international cartel, was the longest operating cartel in Hungary, lasting from 1991 until 2003.

Argentina Cartel in the medical oxygen supply market

Complainants usually do not possess enough evidence to prove that a cartel exists, but without their initiative, many cartel prosecutions would never begin.

For most countries there is one most effective tool available to the cartel prosecutor the dawn raid, or unannounced visit to the offices of suspected cartel operators for the purpose of seizing documentary or electronic evidence of a cartel agreement.

The representative of the United States Federal Trade Commission commented that, although a leniency programme had proved the most effective investigatory tool in cartel prosecution, the United States had prosecuted cartels successfully before it introduced a leniency programme.

Argentina Cartel in the medical oxygen supply market 4

Previously, a cement cartel had been fined EUR 10,000,000.

See ICN Working Group on Cartels, Defining Hard Core Cartel Conduct Effective Institutions Effective Penalties , in Building Blocks For Effective Anti Cartel Regime, vol. 1.

As a result of the cartel, hospitals and consumers were charged high prices for the medical oxygen and the cartel members enjoyed illegally acquired high profits.

Begin to impose strong sanctions against cartel conduct. As was noted above, an indispensable element of a successful anti cartel programme is an aggressive sanctioning policy.

Cartel cases are much more persuasive if they contain direct evidence of agreement involving the cartel participants, and evidence that the participants knew that their conduct was unlawful.

Brazil has sharply increased its anti cartel enforcement in recent years.

Recently there has been some increase in anti cartel activity, however.

How does a robust competition culture support successful anti cartel enforcement?

Prosecution

Prosecution

A second specialized investigative tool in cartel cases is the leniency programme.

The primary purpose of sanctions in the cartel context is as a deterrent.

The harm caused by the cartel should be emphasized, and quantified, if possible.

Cartel Overcharges Survey and Meta Analysis (draft). www.encore.nl documents Connor_MetaAnalysis3 10 05.pdf

The Prosecution

2. Prosecution

(b) Prosecution

(c) Prosecution

Many experts consider anti cartel activity the most important function of a competition agency.

Other sectors that appear frequently in cartel cases include transportation services and professional services.

In several cases described above, the evidence of a cartel agreement was only circumstantial.

That is, the competition agency must first establish credibility in its anti cartel programme.

The vital role of strong sanctions in the anti cartel effort should be stressed.

The optimal fine for this purpose is a multiple of the actual gain, because not every cartel is discovered and prosecuted, a factor that businesspeople take into account in deciding whether to engage in a cartel.

Investigation and Prosecution

Public Prosecution Service