31 January 2013 Leniency Fundamentals – How to Design & Implement an Effective Leniency Program

Outline

Introduction to CCS

Implementation of Leniency Program Mar Competition Act comes into Force CCS begins enforcement of the Act Study and Review of Leniency programs from other jurisdictions CCS introduces Leniency Guidelines Formally

CCS’ Leniency Regime – Key Features i.Leniency Programme since 2009 ii.1 successful leniency case - Electric Works Case iii.Increasing trend of international cartel applications iv.Challenges

CCS’ Leniency Regime – Key Features i.Immunity from Financial Penalties for 1 st applicant ii.Up to 50% reduction for subsequent applicants iii.Initial contact & Marker System iv.Invited Leniency v.Leniency Plus

Outreach & Advocacy – Before Implementation Educating Businesses Ensuring Internal Framework / Processes strong Safeguards

Outreach & Advocacy – After Implementation Guidelines Manga Comics Information Booklets Talks to Stakeholders Animation Contests Website Links

i.Information Sharing ii.Different Enforcement Regimes iii.Right against self- incrimination Cooperation i.Process ii.Identity of Individual iii.Identity of Undertaking Practical Challenges Confidentiality i.Big MNCs ii.Due Diligence iii.Own statement or Applicant’s Managing Applicant

Pro Arguments  Potential for quicker resolution  Enhances effectiveness  Coordination of Investigations  Capacity Building Contra Arguments  Criminal vs Civil Regimes  Privilege against self-incrimination  Disincentive to seek leniency  Divergence in leniency frameworks Practical Challenges

Improvements & Revisions i.Periodic Review – Guidelines ii.Update of Internal Procedure Manuals iii.Alignment of Processes

Harikumar Sukumar Pillay Deputy Director (Enforcement) Legal & Enforcement Championing Competition for growth and choice Thank you. Questions?