ANTI-CARTEL ENFORCEMENT TEMPLATE. CARTELS WORKING GROUP Subgroup 2: Enforcement Techniques

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1 ANTI-CARTEL ENFORCEMENT TEMPLATE CARTELS WORKING GROUP Subgroup 2: Enforcement Techniques Uruguay date of completion: 31 October 2013

2 ICN ANTI-CARTEL ENFORCEMENT TEMPLATE IMPORTANT NOTES: This template is intended to provide information for the ICN member competition agencies about each other s legislation concerning hardcore cartels. At the same time the template supplies information for businesses participating in cartel activities about the rules applicable to them; moreover, it enables businesses which suffer from cartel activity to get information about the possibilities of lodging a complaint in one or more jurisdictions. Reading the template is not a substitute for consulting the referenced statutes and regulations. This template should be a starting point only. 1. Information on the law relating to cartels A. Law(s) covering cartels: B. Implementing regulation(s) (if any): Decreto 404/007. Available at C. Interpretative guideline(s) (if any): Available in Spanish. D. Other relevant materials (if any): 2. Scope and nature of prohibition on cartels A. Does your law or case law define the term cartel? If not, please indicate the term you use instead. B. Does your legislation or case law distinguish between very serious cartel behaviour ( hardcore cartels No. "all practices, behaviors and individual or collective recommendations that seek to restrict, limit, block, distort or impede current or future competition in the relevant market" Art. 2 Law No.

3 e.g.: price fixing, market sharing, bid rigging or production or sales quotas 1 ) and other types of cartels? C. Scope of the prohibition of hardcore cartels: D. Is participation in a hardcore cartel illegal per se? E. Is participation in a hardcore cartel a civil or administrative or criminal offence, or a combination of these? No. There are no practices or behaviours prohibited per se. As the Art. 2 says "the enforcing authority shall be able to take into account whether these practices, behaviors or recommendations create gains of economic efficiency for the individuals, economic units or companies involved, the possibility to obtain them through alternative manners and the gain that is transferred to consumers" There is no criminal offence under the competition law. 3. Investigating institution(s) A. Name of the agency, which investigates cartels: B. Contact details of the agency: C. Information point for potential complainants: D. Contact point where complaints can be lodged: E. Are there other authorities which may Comisión de Promoción y Defensa de la Competencia. For the regulated sector, the agencies are the regulatory agencies: Unidad Reguladora de Servicios de Energía y Agua for energy, water and sanitation; Unidad Reguladora de Servicios de Comunicación for telecomunicationes and poste services and Banco Central del Uruguay for financial services. Comisión de Promoción y Defensa de la Competencia Juncal 1355 of Montevideo, Uruguay competencia@mef.gub.uy; lmacedo.competencia@mef.gub.uy Website available only in Spanish. competencia@mef.gub.uy Juncal 1355 of 802 No 1 In some jurisdictions these types of cartels and possibly some others are regarded as particularly serious violations. These types of cartels are generally referred to as hardcore cartels. Hereinafter this terminology is used.

4 assist the investigating agency? If yes, please name the authorities and the type of assistance they provide. 4. Decision-making institution(s) 2 [to be filled in only if this is different from the investigating agency] A. Name of the agency making decisions in cartel cases: B. Contact details of the agency: C. Contact point for questions and consultations: D. Describe the role of the investigating agency in the process leading to the sanctioning of the cartel conduct. E. What is the role of the investigating agency if cartel cases belong under criminal proceedings? 5. Handling complaints and initiation of proceedings A. Basis for initiating investigations in cartel cases: B. Are complaints required to be made in a specific form (e.g. by phone, in writing, on a form, etc.)? Complaint, officio, leniency application..the complaint may be presented in writing to the enforcing authority at Juncal 1355 of 802, containing the identification of the person reporting and the precise description of the presumably anti-competitive behavior being carried out, accompanied by all proof available in this regard. 2 Meaning: institution taking a decision on the merits of the case (e.g. prohibition decision, imposition of fine, etc.)

5 C. Legal requirements for lodging a complaint against a cartel: D. Is the investigating agency obliged to take action on each complaint that it receives or does it have discretion in this respect? E. If the agency intends not to pursue a complaint, is it required to adopt a decision addressed to the complainant explaining its reasons? F. Is there a time limit counted from the date of receipt of a complaint by the competition agency for taking the decision on whether to investigate or reject it? No legitimate interest is required to lodge a complaint. ). "Any person, whether physical or legal, public or private, domestic or foreign, can file a complaint regarding the existence of practices prohibited by this law." Art. 12 Law The agency should take action except in the case where the complaint is deemed manifestly improper. Yes. The agency has a time limit of 10 working days from the date of receipt of the complaint to decide about appropriateness of the complaint. After this period,those against whom the complaint was filed shall be notified. 6. Leniency policy 3 A. What is the official name of your leniency policy (if any)? B. Does your jurisdiction offer full leniency as well as partial leniency (i.e. reduction in the sanction / fine), depending on the case? C. Who is eligible for full leniency? There is no official name for the leniency policy. In the case of collusion between competitors, reports filed by one of the colluding parties or the support they provide to obtain sufficient evidence to penalize the other infractors shall be considered especially mitigating. Art 17 Law Art. 34 Decreto 404/007 "Aquellas empresas que aporten información suficiente para el desmantelamiento y sanción de un acuerdo entre competidores, en los términos establecidos en el siguiente artículo, serán exoneradas de cualquiera de las sanciones previstas en el literal C) del artículo 17 y en el artículo 19 de la ley que se reglamenta." There is no partial leniency. Only the first one to come is eligible. Art. 34 Decreto 404/007: "Tampoco podrán acogerse a este beneficio las restantes empresas integrantes del acuerdo, una vez que una de ellas ha 3 For the purposes of this template the notion of leniency covers both full leniency and a reduction in the sanction or fines. Moreover, for the purposes of this template terms like leniency amnesty and immunity are considered as synonyms.

6 solicitado la misma. Sin embargo, las restantes empresas podrán beneficiarse de la atenuante si presentan información en los términos del presente artículo de otros acuerdos entre competidores de los que posean información suficiente." D. Is eligibility for leniency dependent on the enforcing agency having either no knowledge of the cartel or insufficient knowledge of the cartel to initiate an investigation? In this context, is the date (the moment) at which participants in the cartel come forward with information (before or after the opening of an investigation) of any relevance for the outcome of leniency applications? E. Who can be a beneficiary of the leniency program (individual / businesses)? F. What are the conditions of availability of full leniency: G. What are the conditions of availability of partial leniency (such as reduction of sanction / fine / imprisonment): H. Obligations for the beneficiary after the leniency application has been accepted: I. Are there formal requirements to make a leniency application? J. Are there distinct procedural steps within the leniency program? [e.g.: provisional guarantee of leniency PGL and further steps leading to a final leniency agreement / Art. 34 Decreto 404/007: "...se considerará como atenuante la denuncia realizada por uno de los miembros del acuerdo o el aporte que éste brinde para la obtención de pruebas suficientes para la sanción de los restantes infractores " No Both individual and bussiness can de beneficiary. No puede otorgarse a aquellas empresas que hayan creado o iniciado la conformación de acuerdos con otros competidores, Debe aportar información suficiente para el desamentalamiento y sanción de un acuerdo entre competidores. Full cooperation wuth the investigating agency during the proceedings. Presentarse mediante nota ante el Órgano de Aplicación, con firma certificada por escribano público de sus representantes o apoderados con facultades suficientes. Art. 34 Dec 404/007 estable que información debe, al menos, aportar: tipo de acuerdo, cantidad de empresas, identificación de los representantes de empresas involucradas, período del acuerdo, detalle de las pruebas que dispone. El Órgano de Aplicación estudia la información presentada y se debe expedir en un plazo de veinte días hábiles sobre la pertinencia de la excepción. Si se considera pertinente, la empresa debe aportar toda la información propuesta. Las actuaciones realizadas en esta etapa se consideran medidas preparatorias. Una vez resuelta la pertinencia de excepción, el Órgano de

7 decision)?] Aplicación inicia la investigación. (Art 35 Dec 404/007) K. At which time during the application process is the applicant given certainty with respect to its eligibility for leniency, and how is this done? L. What is the legal basis for the power to agree to grant leniency? Is leniency granted on the basis of an agreement or is it laid down in a (formal) decision? Who within the agency decides about leniency applications? M. Does your legislation have a marker system? If yes, please describe it. N. Does the system provide for any extra credit 4 for disclosing additional violations? O. Is the agency required to keep the identity of the beneficiary confidential? If yes, please elaborate. P. Is there a possibility of appealing an agency s decision rejecting a leniency application? Q. Contact point where a leniency application can be lodged: R. Does the policy address the possibility of leniency being revoked? If yes, describe the circumstances where revocation would occur. Can an appeal be made against a decision to El Órgano de Aplicación estudia la información presentada y se debe expedir en un plazo de veinte días hábiles sobre la pertinencia de la excepción. Si se considera pertinente, la empresa debe aportar toda la información propuesta. Leniency is given by a formal decision of the agency and it is settled down in an agreement. No Yes."Las restantes empresas podrán beneficiarse de la atenuante si presentan información en los términos del presente artículo de otros acuerdos entre competidores de los que posean información suficiente." Si, esta previsto. Yes Comisión de Promoción y Defensa de la Competencia Juncal 1355 of Montevideo, Uruguay competencia@mef.gub.uy; lmacedo.competencia@mef.gub.uy Podria revocarse por falta de cumplimiento. 4 Also known as: leniency plus, amnesty plus or immunity plus. This category covers situations where a leniency applicant, in order to get as lenient treatment as possible in a particular case, offers to reveal information about participation in another cartel distinct from the one which is the subject of its first leniency application.

8 revoke leniency? S. Does your policy allow for affirmative leniency, that is the possibility of the agency approaching potential leniency applicants? 7. Investigative powers of the enforcing institution(s) 5 A. Briefly describe the investigative measures available to the enforcing agency such as requests for information, searches/raids 6, electronic or computer searches, expert opinion, etc. and indicate whether such measures requires a court warrant. B. Can private locations, such as residences, automobiles, briefcases and persons be searched, raided or inspected? Does this require authorisation by a court? C. May evidence not falling under the scope of the authorisation allowing the inspection be seized / used as evidence in another case? If yes, under which circumstances (e.g. is a post-search court warrant needed)? D. Have there been significant legal Article 11 Law 18159: Before formally initiating any investigation, the enforcing authority may require information from any person, whether physical or legal, public or private, that enables it to become aware of the acts or events relative to the conformation of markets and the practices carried out in them. Likewise, if deemed appropriate, the enforcing authority may require probatory measures from lower courts in a confidential nature and without notifying any possible investigated parties or third parties, such as the exhibition and acquisition of copies of civil and commercial documents, company books, company minutes and accounting databases. For such purposes, the judges of first instance in the Montevideo civil courts and judges of first instance in the interior shall be deemed competent, according to the case. Yes, with an authorisation by a court. Yes No 5 6 Enforcing institutions may mean either the investigating or the decision-making institution or both. Searches/raids means all types of search, raid or inspection measures.

9 challenges to your use of investigative measures authorized by the courts? If yes, please briefly describe them. 8. Procedural rights of businesses / individuals A. Key rights of defence in cartel cases: B. Protection awarded to business secrets (competitively sensitive information): is there a difference depending on whether the information is provided under a compulsory legal order or provided under informal co-operation? La parte que resulta incriminada puede acceder a los documentos aun si fueron declarados confidenciales, si se trata de la prueba decisiva para declararlo culpable. The duties set forth to bring information and documents in no way denote an obligation to disclose trade secrets, plans, "how to" instructions, inventions, formulas or patents.(art. 14 Law 18159) 9. Limitation periods and deadlines A. What is the limitation period (if any) from the date of the termination of the infringement by which the investigation / proceedings must begin or a decision in the merits of the case must be made? B. What is the deadline, statutory or otherwise (if any) for the completion of an investigation or to make a decision in the merits? C. What are the deadlines, statutory or otherwise (if any) to challenge the commencement or completion of an investigation or a decision regarding Actions that originate in the carrying out of practices prohibited by this law shall expire five years after they are verified both in terms of the public authority to investigate and punish those responsible There is no deadline 10 labour days

10 sanctions? 10. Types of decisions A. Please list which types of decisions on the merits of the case can be made in cartel cases under the laws listed under Section 1. Ordering the infringement to bring to an end, imposition of fines. B. Please list which types of decisions on the merits of the case can be made in hardcore cartel cases under the laws listed under Section 1 (if different from those listed under 10/A). C. Can interim measures 7 be ordered during the proceedings in cartel cases? (if different measures for hardcore cartels please describe both 8.) Which institution (the investigatory / the decision-making one) is authorised to take such decisions? What are the conditions for taking such a decision? The agency may order interim measures such as ordering the immediate termination of the infringement. 11. Sanctions for procedural breaches (non-compliance with procedural obligations) 9 A. Grounds for the 7 In some jurisdictions, in cases of urgency due to the risk of serious and irreparable damage to competition, either the investigator or the decision-making agency may order interim measures prior to taking a decision on the merits of the case [e.g.: by ordering the immediate termination of the infringement]. 8 Only for agencies which answered yes to question 2.C. above 9 In some jurisdictions non-compliance with procedural obligations (e.g. late provision of requested information, false or incomplete provision of information, lack of notice, lack of disclosure, obstruction of justice, destruction of evidence, challenging the validity of documents authorizing investigative measures, etc.) can be sanctioned.

11 imposition of procedural sanctions / fines: B. Type and nature of the sanction (civil, administrative, criminal, combined): C. On whom can procedural sanctions be imposed? D. Criteria for determining the sanction / fine: E. Are there maximum and / or minimum sanctions / fines? 12. Sanctions on the merits of the case A. Type and nature of sanctions in cartel cases (civil, administrative, criminal, combined): On whom can sanctions be imposed? administrative Representatives of businesses, businesses, associations of companies B. Criteria for determining the sanction / fine: C. Are there maximum and / or minimum sanctions / fines? D. Guideline(s) on calculation of fines: [name and reference number, availability (homepage address) and indication of the languages in which these materials are available] E. Does a challenge to a decision imposing a sanction / fine have an automatic suspensory effect on that sanction / fine? If it is necessary to The following shall be taken into account for its determination: the amount of the damage caused, the degree of participation of those responsible, intentionality, repeat offender status and the attitude taken during administrative actions.(art 17 Law 18159) Yes --- No

12 apply for suspension, what are the criteria? 13. Possibilities of appeal A. Does your law provide for an appeal from a decision that there has been a violation of a prohibition of cartels? If yes, what are the grounds of appeal, such as questions of law or fact or breaches of procedural requirements? B. Before which court or agency should such a challenge be made?

ANTI-CARTEL ENFORCEMENT TEMPLATE. CARTELS WORKING GROUP Subgroup 2: Enforcement Techniques

ANTI-CARTEL ENFORCEMENT TEMPLATE CARTELS WORKING GROUP Subgroup 2: Enforcement Techniques Switzerland Updating of the template: 07.09.2016 ICN ANTI-CARTEL ENFORCEMENT TEMPLATE IMPORTANT NOTES: This template