In the leniency procedure, a company participating in a cartel may become eligible for a full or partial exemption from the resulting penalty payments when it reveals the cartel to the competition authorities. The Finnish Competition and Consumer Authority has now launched an online leniency application form which representatives of companies can use to submit their applications.
Participating in a cartel is subject to a penalty payment of up to 10% of a company’s worldwide turnover. However, as part of the leniency procedure, the company that first reveals the secret cartel to the FCCA may be exempted from the penalty payment that the FCCA would otherwise propose to the Market Court. In order to be exempted from the penalty payment, the company must provide the FCCA with a corporate statement as well as other information and evidence proving the cartel’s existence before the FCCA is informed of the cartel by another source.
In addition to the company that first exposes the cartel to the FCCA, the other parties to the cartel can also benefit from their cooperation with the FCCA. The penalty payment for other companies participating in the cartel may be reduced by up to 50% if they provide the FCCA with relevant information that can be used to establish the cartel’s existence or extent, as well as the nature of the cartel.
You can now apply online for a full or partial exemption from the penalty payment from the FCCA. You can use the online form to submit your corporate statement, as well as any information or evidence proving the cartel’s existence. As before, you can also submit your leniency application in writing by email or post, or you can provide an oral statement by phone or at the FCCA’s premises.
"If your company is involved in a secret cartel that violates competition law, you should act quickly, since only the first company that contacts the FCCA will be exempt from the penalty payment. You can also contact the FCCA anonymously to discuss your current situation and how you could initiate the leniency procedure."
The leniency procedure has already been utilised in Finland: in the EPS insulation price cartel, a total of EUR 3.2 million in penalty payments was imposed on two companies participating in the cartel. The third company involved in the cartel avoided any penalty payments, since it was the first to reveal the cartel to the FCCA.