Global Cartel Enforcement Activity Predicted To Rise Following 2015 Decline In Fines
Monday 1 February 2016 @ 11.53 a.m. | Trade & Commerce
Allen & Overy’s 2015 report on global cartel enforcement has been released, with the firm reporting that overall, fines for cartel activity declined in 2015. The report found that enforcement in the United States hit a record high, with US $2.853 billion in fines being imposed between October 2014 – September 2015, but globally this was offset by a decline in fines elsewhere, particularly in the European Union. However, Allen & Overy are predicting that 2016 will see an increase in cartel enforcement activity, due to the number of new investigations being started around the world.
Allen & Overy’s report found:
“Auto parts and financial services penalties dominated global enforcement fine totals in 2015. And while financial services will remain a focus for enforcers in 2016, several new antitrust investigations suggest a shift in activity toward the digital, telecom, energy, and consumer products sectors.
Global enforcers continued the mantra for increased accountability for individual executives. The United States issued serious warnings that the extradition of foreign national defendants will remain a top priority, while jurisdictions like the United Kingdom, South Korea, and Japan, in both word and action, emphasized the importance of individual prosecutions to their enforcement agendas.”
Cartel Enforcement Activity in Australia
The Australian section of the report notes that:
“The Australian Competition and Consumer Commission (ACCC) did not issue any cartel fines in 2015. Chairman Rod Sims, however, is hopeful that the ACCC will bring its first criminal action by the first half of 2016. The ACCC is currently involved in an estimated 12 in-depth cartel investigations in industries ranging from construction to red meat processing.”
In an interview with Lawyers Weekly, Peter McDonald of Allen & Overy explained that the lack of fines recorded in Australia was partially a function of the way cartel enforcement activity functioned in Australia. Unlike other national bodies, the ACCC has to bring proceedings in the Federal Court, rather than personally imposing fines. As decisions are subject to appeals and can involve separate legal issues, it can be some time before a penalty is imposed. Mr McDonald said that this difference did not affect the ACCC’s performance, calling it “an effective enforcement agency”, and noted it was currently “awaiting judgment in a number of cases, including in proceedings relating to the air cargo industry, cable industry, egg production industry and motor parts industry”.
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