Achieving a Competition Compliance Culture in Russia: Assessing the UK Experience in Compliance Programmes to Deter Cartels
Cartels, which are considered as the most harmful anticompetitive practice, continue to exist in many sectors of the global economy in spite of the severe sanctions regularly imposed on the cartelists by the competition authorities worldwide. This suggests that the approach to antitrust enforcement requires rethinking, and the necessity to move beyond the traditional enforcement approach, to creating a pro-compliance culture in companies. The paper suggests that robust compliance programmes, voluntarily implemented by companies to prevent infringements of competition law could be considered as one of the major elements of cartel deterrence. The paper reviews the pioneering experience of UK competition authorities in rewarding infringing companies for their efforts to comply with competition law – by reducing fines for committed violations, such as participation in cartels. The paper analyses the UK approach through the prism of its possible application in Russia, where antimonopoly laws continue to actively respond to the development of the best international competition practice, including cartel deterrence. The relative position of officials in the Russian antimonopoly body, the FAS, with respect to advocating antimonopoly compliance in Russia is presented in this work through an interview conducted by the author of this paper. The work formulates a three-step plan, embracing particular measures to develop competition compliance culture in Russia.
About the AuthorAnzhela Korzhevskaya
Deputy Director of Legal Department, FESCO Transportation Group, LLM in the International Commercial and Competition Law at the University of East Anglia (UK) (29 Serebryanicheskaya emb., Moscow, 109028, Russia
1. Geradin, Damien. Antitrust Compliance Programmes and Optimal Antitrust Enforcement: A Reply to Wouter Wils, 1(2) Journal of Antitrust Enforcement (2013), available at <http://papers.ssrn.com/abstract_id=2241452> (accessed May 16, 2015) 1, 7, 10–11, 14, 20. doi:10.1093/jaenfo/jnt004
2. Guidelines on the Method of Setting Fines Imposed Pursuant to Article 23(2)(a) of Regulation No. 1/2003 ¶¶ 2, 28, 30, 2006 O.J. (C 210) 2, 2, 4.
3. Henry, David. Leniency Programmes: An Anaemic Carrot for Cartels in France, Germany and the UK?, 26(1) E.C.L.R., sec. 2 (2005).
4. How Your Business Can Achieve Compliance with Competition Law: Guidance paras. 1.2–1.4, 1.6, 1.15, 3.1, 4.1, 5.1, ch. 7. (OFT 2011), at <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/284402/oft1341.pdf>(accessed May 17, 2015).
5. Kolasky, William J. Antitrust Compliance Programs: The Government Perspective 14, Department of Justice (Jul. 12, 2002), <http://www.justice.gov/atr/public/speeches/224389.pdf> (accessed May 17, 2015).
6. Morgan, Eleanor J. Controlling Cartels: Implications of the EU Policy Reforms, 27(1)
7. European Management Journal 1 (2009). doi:10.1016/j.emj.2008.04.006
8. Murphy, Joseph E., & Boehme, Donna. Fear No Evil: A Compliance and Ethics Professionals’ Response to Dr. Stephan 5, 10–11, SSR N (Nov. 28, 2011), <http://ssrn. com/abstract=1965733> (accessed May 16, 2015).
9. Murphy, Joseph, & Kolasky, William. The Role of Anti-Cartel Compliance Programs in Preventing Cartel Behavior, 26(2) Antitrust 61–62, 64 (2012), available at <http://summerconvention.utahbar.org/2014/materials/H2_Cartel%20Compliance%20Programs.pdf> (accessed May 16, 2015).
10. OFT’s Guidance as to the Appropriate Amount of a Penalty 12 n. 26, paras. 1.2, 1.4, 2.1, 2.15 (OFT 2012), at <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/284393/oft423.pdf> (accessed May 16, 2015).
11. Promoting Compliance with Competition Law ¶ 5, at 186, ¶ 6, at 187, ¶ 7, at 187, ¶ 11, at 191, Appendix III, OECD (Aug. 30, 2012), <http://www.oecd.org/daf/competition/Promotingcompliancewithcompetitionlaw2011.pdf> (accessed May 17, 2015).
12. Riley, Anne, & Sokol, D. Daniel. Rethinking Compliance 1, 6, 45–46, SSRN (Aug. 25, 2014), <http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2475959> (accessed May 16, 2015).
13. Sokol, D. Daniel. Cartels, Corporate Compliance and What Practitioners Really Think about Enforcement, 78(1) Antitrust Law Journal 236 (2012), available at <http://papers.ssrn.com/abstract_id=2079336> (accessed May 16, 2015).
14. Stephan, Andreas. Hear No Evil, See No Evil: Why Antitrust Compliance Programmes May Be Ineffective at Preventing Cartels 2, 13–15 (ESRC Centre for Competition Policy & Norwich Law School, University of East Anglia, CCP Working Paper 09-09, July 2009), <https://www.uea.ac.uk/polopoly_fs/1.122147!ccp09-9wp.pdf> (accessed May 17, 2015).
15. Stephan, Andreas. Why the U.K.’s New Approach to Competition Compliance Makes for Good Enforcement, 2012(1) CPI Antitrust Chronicle 2–4, 5, available at <http://core. kmi.open.ac.uk/download/pdf/8821351.pdf> (accessed May 17, 2015).Strategy Development of the Competition and Antimonopoly Regulation in the Russian Federation in 2013–24 [Стратегия развития конкуренции и антимонопольного регулирования в РФ на период 2013–2024 гг. [[Strategiya razvitiya konkurentsii i antimonopol’nogo regulirovaniya v RF na period 2013–2024 gg.]] 4, ¶ 2.8.1, at <http://www.fas.gov.ru/netcat_files/File/Str_razv_konk_i_antimonop_reg_13-14.pdf> (accessed May 16, 2015).
16. Whish, Richard, & Bailey, David. Competition Law 58–60, 277, 279, 553 (7th ed., Oxford University Press 2012).
17. Wils, Wouter P.J. Antitrust Compliance Programmes and Optimal Antitrust Enforcement, 1(1) Journal of Antitrust Enforcement 52 n. 1, 55, 60, 66–68, 72 (2013), available at <http://antitrust.oxfordjournals.org/content/1/1/52.full.pdf+html>(accessed May 16, 2015). doi:10.1093/jaenfo/jns006
18. Алешин Д.А., Артемьев И.Ю., Башлаков-Николаев И.В. и др. Конкурентное право России: Учебник [Aleshin D.A., Artem’ev I.Yu., Bashlakov-Nikolaev I.B. i dr. Konkurentnoe pravo Rossii: Uchebnik [Dmitry A. Aleshin et al. Competition Law of Russia: Textbook]] 37, 44, 63 (Igor Yu. Artemiev et al., eds.) (2nd ed., Publishing House of the Higher School of Economics 2014).
19. Гаврилов Д.А., Пузыревский С.А., Серегин Д.И. Конкурентное право: Учебник [Gavrilov D.A., Puzyrevskiy, Seregin D.I. Konkurentnoe pravo [Denis A. Gavrilov et al., Competition Law: Textbook]] 78, 295 (Norma; INFRA-M 2014).
For citation: Korzhevskaya A. Achieving a Competition Compliance Culture in Russia: Assessing the UK Experience in Compliance Programmes to Deter Cartels. Russian Law Journal. 2015;3(2):62-96. https://doi.org/10.17589/2309-8678-2015-3-2-62-96
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0.