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Settlements in cartel cases

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  • Ascione, Aurora
  • Motta, Massimo

Abstract

There is little doubt that the fight against cartels is one of the most important objectives of Antitrust Authorities, and the European Commission (EC herewith) represents no exception in this regard. While the Leniency Policy has been successful in triggering evidence by cartel participants and thus in determining the collapse of several cartels, it has not reduced considerably the length of the cartel proceedings, which is another potential benefit of leniency programmes. In this paper we find that a 10% fine reduction to firms which agree to settle with the Commission may be too weak an incentive for firms to settle. This means that the settlements participation rate will not be high enough to effectively reduce the duration of cartel proceeding.

Suggested Citation

  • Ascione, Aurora & Motta, Massimo, 2008. "Settlements in cartel cases," MPRA Paper 24416, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24416
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    References listed on IDEAS

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    1. Motta, Massimo & Polo, Michele, 2003. "Leniency programs and cartel prosecution," International Journal of Industrial Organization, Elsevier, vol. 21(3), pages 347-379, March.
    2. Franzoni, Luigi Alberto, 1999. "Negotiated Enforcement and Credible Deterrence," Economic Journal, Royal Economic Society, vol. 109(458), pages 509-535, October.
    3. LaCasse, Chantale & Payne, A Abigail, 1999. "Federal Sentencing Guidelines and Mandatory Minimum Sentences: Do Defendants Bargain in the Shadow of the Judge?," Journal of Law and Economics, University of Chicago Press, vol. 42(1), pages 245-269, April.
    4. William M. Landes, 1974. "An Economic Analysis of the Courts," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 164-214, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Fotis, Panagiotis & Tselekounis, Markos, 2020. "Optimal Reduction of Cartel Fines induced by the Settlement Procedure," MPRA Paper 99154, University Library of Munich, Germany.
    2. Michael Hellwig & Kai Hüschelrath & Ulrich Laitenberger, 2018. "Settlements and Appeals in the European Commission’s Cartel Cases: An Empirical Assessment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(1), pages 55-84, February.
    3. Budzinski Oliver & Kuchinke Björn A., 2012. "Deal or No Deal? Consensual Arrangements as an Instrument of European Competition Policy," Review of Economics, De Gruyter, vol. 63(3), pages 265-292, December.
    4. Choné, Philippe & Souam, Saïd & Vialfont, Arnold, 2014. "On the optimal use of commitment decisions under European competition law," International Review of Law and Economics, Elsevier, vol. 37(C), pages 169-179.
    5. Hüschelrath, Kai & Laitenberger, Ulrich, 2015. "The settlement procedure in EC cartel cases: An empirical assesment," ZEW Discussion Papers 15-064, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Settlement; cartel;

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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