Request for leniency following participation in a cartel

This page was last modified on 04-02-2013

A request for leniency allows businesses that have engaged in an anti-competitive agreement to end such practices and to avoid or benefit from a reduction of financial penalties.

Who is concerned

All businesses involved in the production and distribution of goods or the provision of services and that are participating in a cartel can request leniency from the Competition Council (Conseil de la concurrence).

A business cannot benefit from the leniency programme if it has:

  • abused a dominant position or;
  • coerced other businesses into taking part in the agreement.

Preliminary steps

A business that denounces an anti-competitive agreement in which it has participated must immediately withdraw from this agreement.

How to proceed

Request for leniency

Any business participating in a cartel (agreement) can contact the Competition Council in order to report the existence of such a cartel and provide the information it has on the subject.

The request for leniency must be sent to the Competition Council stating:

  • the name and address of the business submitting the request;
  • the circumstances behind the request for leniency;
  • the members of the alleged cartel;
  • the product(s) or service(s) in question;
  • the territory or territories affected;
  • the total duration of the alleged agreement;
  • the nature of the alleged agreement;
  • information concerning any request for leniency already submitted or to be submitted to any other competition authority, including outside the European Union, concerning the alleged agreement.

Decision of the Competition Council

Conditional decision

As a first step, the Competition Council will take a conditional decision, in which they set the conditions for leniency.

The request for leniency is followed by an inquiry and the business who denounced the cartel must provide:

  • complete and continuous cooperation until the procedure is finished;
  • all the proof and information on the alleged cartel that it has in its possession.

In the interest of the investigation and the business requesting leniency, requests must be handled with a high level of confidentiality, which is guaranteed by the Competition Council throughout the investigation.

Definitive decision

The definitive decision to grant leniency or not is only taken at the time of the final decision and is based on the precise criteria that were previously defined in the conditional leniency decision.

At the end of the investigation:

  • if no offence is established, the council closes the investigation and the request for leniency no longer applies;
  • if an offence has been committed, the Council questions all the parties concerned and makes a decision aimed at ending the agreement: it also makes a ruling on the request for leniency and may decide to:
    • fully release the business denouncing the cartel from paying a fine (in the event where the Council had no actual knowledge of this agreement and the information provided to it was actually pertinent);
    • reduce the fine of the business denouncing the agreement (in the event where the authorities were already aware of the agreement, but the business provided additional proof or information).
A business may benefit from leniency measures if:
  • it is the first to provide proof which allows the existence of an agreement to be established, and;
  • the Council did not have sufficient proof at the time the request for leniency was lodged.

Who to contact

43, rue Sainte Zithe
L-2763 - Luxembourg
Postal box B.P. 856 / L-2018
Luxembourg
Phone: (+352) 247 84174
Fax: (+352) 26 20 12 18
Email info@concurrence.public.lu