The practice and legal control of cartel delinquency : breaking the code of silence

Abstract

The legal control and mechanisms utilized to uncover cartels are analyzed in this thesis. The first chapter explores the world of cartel practice. It explains what the concept of cartel entails. This is followed by an evaluation of the effects ensuing from cartels. A historical voyage into the practice and legal regulation of cartel activity provides an insight to the EC and US perceptions towards cartels-EC agnosticism versus American condemnation. This contributes to perceive the changing nature of EC policy in the legal regulation of cartels from the late 1 gth century until the present day. Chapter 2 examines critically the legal control of cartels in the EC context. Reference is also made to the tough stance taken by the Commission especially as of late. In this examination, it is necessary to include some consideration of policy and law of the US counterpart by way of comparison. Chapter 3 enters into the realm of proof, detection, investigation and prosecution of cartel behaviour and highlights problems in evidence. Reference to case law is pursued in highlighting the difficult task of proving collusion when there is parallelism of prices in an oligopolistic market. Chapter 4 deals with EC leniency programs in assisting the Commission and competition authorities in breaking the code of silence that often surrounds cartel arrangements. Reference is also made to the US Leniency Policy and their strategy of Amnesty Plus in uncovering cartels. The concluding chapter delves into the sanctions provided in the EC context, mainly financial penalties, in contrast with criminal sanctions available in the US. An appraisal of the recent trend towards criminalization of the offence, even in European jurisdictions, follows. The efficacy of financial and criminal sanctions isevaluated and their deterrent factor is analyzed.