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How Are Other Countries Combatting Cartel Agreements?

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It can be interesting to examine how other countries address anti-competitive agreements. The European trend is certainly moving towards penalising a broader range of cartel behaviour using new tools, rather than relying primarily on leniency applications (self-reporting) as in the past.

For example, Spain and Brazil are developing new AI tools to detect cartel agreements or even mere information exchanges. In the United Kingdom, informants are offered financial rewards of up to GBP 250,000 for providing information.

Other countries are improving technical means to examine public annual reports, marketing studies or public statements. Portugal and Spain have public databases where public institutions are required to disclose specific sales data. In the United States, former FBI agents are being involved in the process of investigating cartel agreements. And, of course, there is still a strong emphasis on cooperation between competition authorities.

As expected, the global trend is increasingly focusing on developing technical and AI capabilities to detect typically anti-competitive information exchanges, with some countries considering a single instance sufficient, rather than requiring repeated exchanges. Recently, there has also been a focus on penalising anti-competitive agreements in the labour market, which had previously been overlooked. For example, in Portugal, a notable case involves the non-poaching of "employees" within the local football league, while in Hong Kong, the most common issue is improperly negotiated non-compete clauses.

As we wrote about in a recent post, the Czech Republic is currently discussing an amendment to the Competition Act that introduces individual liability for natural persons involved in cartels, meaning that individuals, as well as companies, can be punished. Introducing or increasing individual liability is also a priority in the United States. In Spain, fines for individuals have been increased to up to EUR 400,000, while in the United Kingdom, individuals can face permanent bans from holding managerial positions in companies (with 35 such bans issued to date).

By Vladena Svobodova, Senior Associate, JSK, PONTES

Czech Republic Knowledge Partner

PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

PRK Partners has one of the most experienced legal teams on the market. We are consistently rated as one of the leading law firms in the region. We have received many significant honours and awards for our work. We represent the interests of international clients operating in the Czech Republic in an efficient way, combining local knowledge with an understanding of their global requirements in a business-friendly approach. We are one of the largest law firms in the Czech Republic and Slovakia. Our specialised teams of lawyers and tax advisors advise major global corporations as well as local companies. We provide comprehensive legal advice drawing on our profound knowledge of local law and markets.

Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

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