The laws of a number of OECD countries permit the imposition of administrative fines on individuals for cartel conduct. In a distinct minority of countries, cartel conduct is a crime, punishable by imprisonment, as well as by fines. The prospect of incarceration can be a powerful deterrent for businesspeople considering entering into a cartel agreement.

While the number of OECD members and observers that have actually imposed sanctions against individuals is relatively small, the principle of sanctions against individuals is increasingly accepted as part of effective anti-cartel enforcement.  This can be seen as an indication of increasing commitment to criminal anti-cartel enforcement, consistent with the OECD's call for tougher sanctions against cartels.

In countries which criminally prosecute cartels and where criminal enforcement has been allocated to public prosecutors, cooperation and coordination between the competition authority and prosecutors are vital to ensure an effective anti-cartel programme.  Lack of cooperation and coordination can undermine anti-cartel efforts. If, for example, a leniency application would expose the applicant to criminal prosecution, the incentives to come forward and reveal a cartel are reduced.

Working Party No. 3 of the OECD Competition Committee held two full-day programs with public prosecutors in cartel matters, in 2005 and 2007 respectively, to discuss ways to increase co-operation in criminal enforcement against cartel activities and on a variety of other criminal violations that can occur in the context of cartel activities, including obstruction of justice, tax fraud and bribery. 

For further information on the OECD work on competition law enforcement, please contact Antonio Capobianco.