A Riskier Environment
October 23, 2008, World Finance

As reported in World Finance, the European Commission (EC) has increased its anti-cartel activity in 2008, with cases and judgments handed down against eight cartels including 45 companies.  Mark Powell, a partner in the Antitrust/Competition Practice at White & Case in Brussels, predicts that the total amount of anti-competition related fines by the EC could exceed €5 billion. 

"Enforcement action is continuing to intensify," he says, "and guidance that allows the Commission to calculate much bigger fines will start to kick in this year."  He says the size of the fines may encourage more companies to come forward and take part in the EC’s program that grants leniency to whistleblowers.

Cartel scrutiny will not decrease next year.  "That’s happening in the European Commission, and it’s also happening in the national competition authorities," says Powell. "They are recognizing that if they want to achieve results for consumers, it is through cartel policy that they are going to do it.

He also noted increased Member State cooperation since new regulations took effect in 2004.  "What is true across the whole of the European Union is that resources are being diverted to focus on this and the sanctions are increasing," says Powell. "There is a more regular exchange of best practice between the authorities, they are learning from each other."