Settlement of cartels and plea bargains: Regulation 622/2008

The Commission has published a new regulation - Regulation 622/2008 - that amends Regulation 773/2004 on the conduct of proceedings by the Commission pursuant to Articles 81 and 82 EC to introduce a "settlement procedure" in cartel cases.

The idea is to induce those subject to an investigation for Article 81 EC violations to settle cases quickly with a 10% reduction of the fine. Sounds like a good idea as it obviates the need to go through the whole procedure if the undertaking investigated is prepared to accept the Commission's findings.

At first glance, though, it looks like a half hearted attempt and not much of an inducement. First, the Commission determines whether it wants to settle, not the undertakings investigated. Second, the settlement discussions take place with a Commission service (the Directorate General for Competition) and the Commission itself is not bound by them. Consequently, even if the discussions have been successfully completed with the service, the Commission can reject the acceptance of the settlement offer made to the undertaking. That looks like a potentially huge waste of time and corporate resources. Third, the reduction in fine is only 10%. Fourth, it looks like an "all or nothing" type of admission only.

A Commission "Notice" has been published that explains the system in more detail.

Here's the press release describing the new system very briefly and here's a set of handy "frequently asked questions".

The new procedure came into force on July 1st, 2008.