marker system of jftcs leniency program mini plenary session 4b icn cartel workshop 2011 wednesday,...
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MARKER SYSTEM OF JFTC’S LENIENCY PROGRAM
Mini Plenary Session 4bICN Cartel Workshop 2011Wednesday, 12 October
Setting up or reforming a leniency Setting up or reforming a leniency programmeprogramme
- What makes a leniency policy - What makes a leniency policy successful –successful –
Takujiro KonoTakujiro KonoSenior Officer for Leniency Program, Investigation BureauSenior Officer for Leniency Program, Investigation Bureau
Japan Fair Trade Commission Japan Fair Trade Commission
LENIENCY PROGRAM OF JAPAN FAIR TRADE COMMISSION
Mini Plenary Session 4bICN Cartel Workshop 2011Wednesday, 12 October
Setting up or reforming a leniency Setting up or reforming a leniency programmeprogramme
- What makes a leniency policy - What makes a leniency policy successful –successful –
Takujiro KonoTakujiro KonoSenior Officer for Leniency Program, Investigation BureauSenior Officer for Leniency Program, Investigation Bureau
Japan Fair Trade Commission Japan Fair Trade Commission
KEY ELEMENTS OF AN EFFECTIVE LENIENCY PROGRAMME Substantial payoff for priority Clarity, transparency, and certainty Application accepted even after investigation
starts Severe penalties for non-applicant(s) Confidentiality of application information
・・・
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
OVERVIEW OF JFTC’S LENIENCY PROGRAM
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4
100%100%immunityimmunity
30%reduction
50%reduction
1st Applicant1st Applicant
2nd Applicant2nd Applicant
30%reduction
AfterAfterBeforeBefore
Up to3 Applicants
the initiation of the JFTC the initiation of the JFTC investigationinvestigation
Up to 5 applicants
30%reduction
33rdrd to 5 to 5thth ApplicantApplicant
Criminal accusation NOT filed by JFTC (Applicant firm and its individuals)
Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
QUALIFICATION REQUIREMENTS<JFTC’s Leniency Program>
For immunity The first firm to comes forward before the first day of the
investigation Not commit further acts on or after the first day of the investigation
For reduction 2nd to 5th firm to self-report Not commit further acts on and after the first day of the
investigation Submit reports and documents unknown to JFTC (for 4th and 5th
application, for application after the investigation begun) Self-report is due the twentieth day from the first day of the
investigation
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
DISQUALIFICATION REQUIREMENTS
<JFTC’s Leniency Program>
Both for immunity and reductionReports and documents submitted not contain false information
Not submit false reports or false materials responding to JFTC's additional requests
Not coerce others to commit the infringement or blocked others from ceasing
Not disclose the fact of application to third parties without justifiable reasons
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
ADDITIONAL REQUIREMENTSFOR APPLICATION AFTER INVESTIGATION STARTS
<JFTC’s Leniency Program>Application Deadline Due the twentieth day from the inception of the investigation Maximum Number of Applications Three The number of applications including before and after the investigation are not more than 5Value of Reporting Must includes the facts other than already ascertained by JFTC
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
JFTC’S EXPERIENCE (1)
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Number of Applications after the introduction of the leniency program ( Since Jan. 2006 )
Number of Cases
Leniency applications are important information sources of price-fixing cartels, etc.
FY 2005 2006 2007 2008 2009 2010 Total
Applications
26 79 74 85 85 131 480
FY 05 06 07 08 09 10 Total
The number of price-fixing cartels and bid-riggings etc
17 9 20
11 22 1
0 89
Leniency applied cases (published) 0 6 1
6 8 21 7 58
Leniency applied companies (published)
0 16 37
21 50 1
0 134
※The period of FY2005 is between Jan. 4 .2006 and Mar. 31.※In 2010, the program was revised to introduce joint application and to expand the number of applicants.
Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
JFTC’S EXPERIENCE (2)
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After the introduction of the leniency program ( Since Jan. 2006 ) → The size of price-fixing cartel cases enlarges.
Strict measures against price-fixing cartels in the large market fields
Main fieldsMarket size
( for one year ) FY
Hot-dip galvanized steel sheets 2109 million US $ 2009
Electric wire 2159 million US $ 2010
Vinyl chloride pipes 1531 million US $ 2008
Optical fiber cable 574 million US $ 2010※Exchange rate(Trade Statistics of Japan) FY2010 82.35\/$ FY2009 90.09\/$ FY2008 96.38\/$
Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
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Multi-agency coordination and cooperation Previous Cases (such as Marin Hose Case)
Pay full attention to matters of Confidentiality
Identity of Leniency Applicant , Information from Leniency Applicant
Legal obligation
The chairman, the commissioners and the staff members of the JFTC shall not divulge or make surreptitious use of trade secrets of entrepreneurs which came to their knowledge in the course of their duties. (Article 39 of the Antimonopoly Act).
Information Exchange in the area of, among other things:
General matters of the violation (relevant market, duration, etc.)
Schedule of the dawn raids, investigation methods, etc.
Results of the dawn raids, Progress of investigationSetting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
JFTC’S EXPERIENCE (3)
THANK YOU FOR YOUR ATTENTION !
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
OVERVIEW OF JFTC’S MARKER SYSTEM JFTC’s Rules on Reporting and Submission of Materials
Regarding Immunity from or Reduction of Surcharges
Form No.1 Reporting
Name and address of the applicant
Products concerned
Basic information of the conduct (such as geographical area, parties, duration)
No need to describe in detail, nor to attach documents
JFTC notifies the applicant of,
the order of submission
the deadline by which (1) reporting the facts regarding the violative act by using Form No.2 and (2) submission of materials should be completed
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
Marker Period
FORM NO. 1: WRITTEN REPORT
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
1. Goods or Services Targetedby the Said Act
2. Description of the Said Act
(1)
(2)
3. The Time of the First Implementation
(The Time of Termination)
______ (Year) ______ (Month) ______ (Day)(until ______ [Year] ______ [Month] ______ [Day])
* The written report shall be prepared in Japanese.
○ Summary of the Violative Act to be Reported
FORM NO. 2: WRITTEN REPORT (1)
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
1. Summary of the Violative Act to be Reported
(1) Goods or Services Targeted by the Said Act
(2) Description of the Said Act
a.b.
(3) Name or Title and Address or Location of Other Entrepreneur(s) Participating in the Said Act
(4) The Time of the First Implementation(The time of Termination)
______ (Year) ______ (Month) ______ (Day)(until ______ [Year] ______ [Month] ______ [Day])
* Yellow cells: Substitution of an oral report for a written report could be possible.
FORM NO. 2: WRITTEN REPORT (2)
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
2. Position Titles and Names of Executives or Employees Who Have Involved in the Said Act at the Reporting Entrepreneur
Current Position Title and Division’s Name
Position Title and Division’s Name at Time of Involvement
(The Time of the Position)Name
3. Names and Others of Executives or Employees Who Have Involved in the Said Act at Other Entrepreneur(s) Participating in the Said Act
Name ofEntrepreneur
Current Position Title and Division’s
Name
Position Title and Division’s Name at Time of Involvement
(The Time of the Position)Name
4. Other Matters for Consideration
5. Submission of Materials
No. Title of Material Description of Material’s Content (Summary) Notes
FEATURES OF JFTC’S MARKER SYSTEM JFTC has No discretion about whether or not to
grant marker Virtually All applicant is notified by JFTC of the
deadline to perfect the marker (according to JFTC’s Rule)
Not only to the 1st applicant As long as applying prior to the investigation
starting date Even the 2nd , 3rd and subsequent applicants are
granted marker(s) The Order of reporting and submission is decided
according to the time when JFTC receives the Form No. 1
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October
THANK YOU FOR YOUR ATTENTION !
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Setting up or reforming a leniency programme
- What makes a leniency policy successful –Mini Plenary Session 4b
ICN Cartel Workshop 2011Wednesday, 12 October