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Deterrence, Recidivism, And European Cartel Fines

Author

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  • Cento Veljanovski

Abstract

Based on an analysis of cartel prosecutions since 2007, this article assesses the way the European Commission has built up its fines in practice. The fines are compared with those imposed by the European Commission over the period from 1999 to 2006. The main findings are that, while fines have increased significantly, this trend is due not to harsher fines but to less generous reductions under the Commission's leniency program. In some areas, the European Commission has not followed its own guidelines—fines are generally lower than set out, the way recidivism is penalized is incoherent, and many aspects of the fining process are unexplained or redacted. Estimated fine-to-sales ratios together with new research on overcharges and detection rates suggest that fines may be closer to those for optimal deterrence than previously thought.

Suggested Citation

  • Cento Veljanovski, 2011. "Deterrence, Recidivism, And European Cartel Fines," Journal of Competition Law and Economics, Oxford University Press, vol. 7(4), pages 871-915.
    • Handle: RePEc:oup:jcomle:v:7:y:2011:i:4:p:871-915.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhr017
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    Citations

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    Cited by:

    1. Florian Smuda, 2014. "Cartel Overcharges And The Deterrent Effect Of Eu Competition Law," Journal of Competition Law and Economics, Oxford University Press, vol. 10(1), pages 63-86.
    2. Redkina, Anastasia (Редькина, Анастасия) & Lagodyuk, Ekaterina (Лагодюк, Екатерина), 2016. "The deterrent effect of Russian control of mergers: An Empirical Study [Сдерживающие Эффекты Российского Контроля Слияний: Эмпирическое Исследование]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 79-104, February.
    3. John K. Ashton & Andrew D. Pressey, 2012. "Who Manages Cartels? The Role of Sales and Marketing Managers within International Cartels: Evidence from the European Union 1990-2009," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2012-11, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    4. Hoang, Cung Truong & Hüschelrath, Kai & Laitenberger, Ulrich & Smuda, Florian, 2014. "Determinants of self-reporting under the European corporate leniency program," International Review of Law and Economics, Elsevier, vol. 40(C), pages 15-23.
    5. Hellwig, Michael & Hüschelrath, Kai, 2016. "Cartel cases and the cartel enforcement process in the European Union 2001-2015: A quantitative assessment," ZEW Discussion Papers 16-063, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • K0 - Law and Economics - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative

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