Thursday, November 13, 2008

Another Move by Nelli Kroes.

DG of competition again fines another cartel with a record USD 1.12 bil. This fine beats the the previous highes individual fines to ThyssenKrupp in Elevator and Escalator Cartel and collectives fines to the cartel for Elevator and Escalator Cartel in medio 2007.

This is the news from IHT
"...In 2005, EU antitrust authorities raided several car glass producers across Europe following a tip-off from "an anonymous informant", the commission said in a statement.

The French company Saint-Gobain was fined €896 million; Pilkington, a British unit of Nippon Sheet Glass, was fined €370 million; Soliver of Belgium will pay €4.396 million; and Asahi will pay €113.5 million. ...."

This remarkable fine joins the lines of convicted cartel as the results of a tough DG Competition under Nelli Kroes. Furthermore, since June, 2008, this tough reputation of DG competition is added with kinda-soft program, so-called settlement program.
With this new program, DG can offer up to 10% fines reduction in exchange of a guilty plea of any cartel members. With this new program, cartel members is encouraged to plea guilty rather, thus the long-and-costly fight in courtroom could be minimized

Hopefully, in the next future, the combination of tough DG, Leniency program and Settlement
Program become a perfect mixture to detect and convict cartel.


Berly said...

its a good program and I hope it continue.

But do you think 10 % fine reduction is enough to induce defection? Would reduction/abolition of prison sentence to CEO n related director be more efficition incentive instead?

fajar said...

salam kenal