Compliance Today (October 2020)
The International Competition Network, an informal network advocating for effective competition of law enforcement, issued a guidance document outlining best practices for international leniency applications. “Leniency” in this case refers to applications by organizations for reduced fines in exchange for cooperating with ongoing investigations.
The document, Guidance on Enhancing Cross-Border Leniency Cooperation,[1] was released in June and addresses issues that arise when enforcement bodies from different jurisdictions work together across national borders. The document explains International Competition Network’s perspective on the core principles of leniency—confidentiality, transparency, and predictability—and the need for pragmatic and flexible approaches to communication and information sharing.
The guidance is based on a report issued in April 2019, Good practices for incentivizing leniency applications,[2] that recommended strong incentives and simple protocols for leniency applications in order to facilitate quick and effective enforcement actions against cartels. The April report stated that “it is widely recognised that many cartels are only uncovered because of leniency applications,” and that immunity from sanctions incentivizes organizations to cooperate fully with competition authorities.