Brussels, 25 October 2022
The European Commission has published guidance that aims to facilitate leniency applications by providing further transparency, predictability and accessibility to potential leniency applicants.
The Commission’s leniency programme gives companies the opportunity to disclose, on a confidential basis, their participation in a cartel and cooperate with the Commission during an investigation. A successful leniency applicant will either completely avoid a potentially high fine or receive a substantial reduction from it.
In order to facilitate leniency applications in a more complex leniency landscape, the Commission decided to issue guidance in the form of a Frequently Asked Questions (FAQ) document, which provides support to companies and their legal advisers.
In particular, the FAQ document:
- Includes clarifications on the application of the Leniency Notice and details on the legal protections and benefits that the leniency programme offers.
- Sets out new practical arrangements, such as identified Leniency Officers that companies or their legal representatives can contact for informal advice on leniency or for guidance on submitting a leniency application.
- Signals the Commission’s intention to discuss potential leniency applications on a “no-names” basis, without the need to disclose the sector, the parties involved or any other details identifying the potential cartel. This will allow potential applicants to ascertain whether the conduct at stake is likely to be considered as a secret cartel and whether reporting it to the Commission would entitle them to benefit from the programme. This possibility will be particularly useful if the conduct is novel or if it is unclear whether it falls within the scope of the Leniency Notice.
Background
The Commission has successfully operated a leniency programme since 1996 and the programme is well known for its high level of predictability and legal certainty given its long time in force and positive review by the EU Courts.
Since the introduction of the currently applicable Leniency Notice in 2006, the Commission has received more than 550 leniency applications and adopted 54 cartel decisions in cases, which were initiated based on leniency applications.
Further information about the Commission’s leniency programme can be found here.