cartel investigations in the eu: procedural fairness for defendants and claimants dave anderson –...
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![Page 1: Cartel investigations in the EU: Procedural fairness for defendants and claimants Dave Anderson – Partner, Berwin Leighton Paisner LLP, Brussels UOHS St](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e675503460f94b61f70/html5/thumbnails/1.jpg)
Cartel investigations in the EU: Procedural fairness for defendants and claimants
Dave Anderson – Partner, Berwin Leighton Paisner LLP, Brussels
UOHS St Martin Conference
Brno, Czech Republic
11 November 2010
![Page 2: Cartel investigations in the EU: Procedural fairness for defendants and claimants Dave Anderson – Partner, Berwin Leighton Paisner LLP, Brussels UOHS St](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e675503460f94b61f70/html5/thumbnails/2.jpg)
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A lack of procedural fairness
• For defendants:• Significant steps taken by the Commission
• Best Practices• Guidelines
• But, despite the good work…• Numerous points of material procedural unfairness• Significant concern about the overall structure• Concern regarding increased visibility for protection
of human rights
• For plaintiffs:• The procedural imbalance remains
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The view from the defendants…
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Dawn raids and inspections
• Authorisation of inspection• Often based on uncorroborated information from
immunity applicant• Lack of independent checks• Infringes right to privacy?
• Interviews and explanations• Individual's rights v. benefit to the company• Provision of self-incriminating information
• No legal privilege for in-house counsel
![Page 5: Cartel investigations in the EU: Procedural fairness for defendants and claimants Dave Anderson – Partner, Berwin Leighton Paisner LLP, Brussels UOHS St](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e675503460f94b61f70/html5/thumbnails/5.jpg)
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The Oral Hearing
• Limited benefit for significant effort
• No cross-examination and no real debate
• Limited attendance by senior officials
• Hearing Officer is reactive rather than proactive
• A missed opportunity
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Is this the right system for this level of prosecution?
• Astronomical level of EU cartel fines changes everything
• General Court Judge Forward – competition proceedings “presenting a quasi-penal character”
• Creeping criminalisation of a system not designed to withstand it
• Commission as:• legislator, prosecutor, judge, jury, occasional damages
claimant
• Spectrum of possibilities for internal or structural change
• Reform will be needed to comply with ECtHR, EU Charter • Resist and fight – or lead by reforming now? • Many options – Inspiration from Member States
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Is the structure sound?
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And the view from the plaintiffs…
![Page 9: Cartel investigations in the EU: Procedural fairness for defendants and claimants Dave Anderson – Partner, Berwin Leighton Paisner LLP, Brussels UOHS St](https://reader030.vdocument.in/reader030/viewer/2022032604/56649e675503460f94b61f70/html5/thumbnails/9.jpg)
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Obstacles to access to justice (I)
• Still no EU-wide legislation, and significant disincentives for claimants
• Key is to strengthen the threat of court proceedings to improve the prospect of more efficient settlements
“Out of court settlements can only really work if they are coupled with a realistic chance of effective court action” – Neelie Kroes
• Right now, typical European procedures encourage defendants to stall and fight and discourage plaintiffs from proceeding at all
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Obstacles to access to justice (II)
• Passing-on defence• Need to strengthen the position of direct purchasers –
e.g. German system
• Discovery/disclosure• Anything is better than nothing• Still can protect leniency programs and submissions• Defendants assisting plaintiffs
• Single damages only?
• Calculation of damages
• Delay of agency published decisions
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Creative solutions to encourage private settlements
• Possibility for interplay between public and private enforcement
• Some options• Immunity applicant must help plaintiffs in civil
proceedings• Reward private restitution with reduction of fines• Integrate private remedies into public
settlements• Impose as a requirement for immunity or
leniency