October 2, 2014 Critical Moments in Cooperation to Maximize Efficiencies for Both Agencies and Companies Tomohiko Kimura Kyowa Sogo Law Offices Osaka, Tokyo 2014 ICN Cartel Workshop Taipei, Taiwan

Topics Managing a global leniency application - Where to file and the timing of application - Coordination between counsels Implementation of corrective measures as part of on-going cooperation - To reduce prices of products on a voluntary basis October 2, 2014Kyowa Sogo Law Offices 2

October 2, 2014Kyowa Sogo Law Offices Managing a global leniency application 3

October 2, 2014Kyowa Sogo Law Offices The world of cartel enforcement Cartel enforcement is a priority for competition authorities and more and more countries are getting involved in it. There has been a considerable coordination between competition authorities. As a practical matter, even if cartel conducts are limited to certain countries, investigations could expand worldwide. - Marine Hose case - Auto Parts cases, etc. 4

October 2, 2014Kyowa Sogo Law Offices Where to file and the timing of application – from a company’s perspective Key considerations Time is of the essence when making application. Do as careful and thorough fact-finding and benefit - risk analysis at outset as possible before deciding where to go. - Not appropriate to conduct thoroughly detailed investigation. You might miss the seats. 5

October 2, 2014Kyowa Sogo Law Offices Where to file and the timing of application – from a company’s perspective Risk-benefit analysis Existence and effects of immunity/leniency program Risk exposures - Location of conducts - Extent of cartel impact (direct or indirect) - Presence in jurisdiction (subsidiaries, branches) - Sanctions (civil and criminal) and briskness of cartel enforcement in jurisdiction - Coordination between authorities 6

October 2, 2014Kyowa Sogo Law Offices Where to file and the timing of application – from a company’s perspective Practicalities Coordination between counsels across the different jurisdictions is critically important. - Consistency in evaluation of facts - Consistency in strategy for immunity/leniency application - Cost savings 7

October 2, 2014Kyowa Sogo Law Offices Implementation of corrective measures as part of on-going cooperation 8

October 2, 2014Kyowa Sogo Law Offices On-going cooperation Conditions for securing leniency position Requested to cooperate genuinely, fully, on a continuous basis and expeditiously What is requested? - depending on the progress of investigation, and varies from jurisdiction to jurisdiction, - Granting waivers - Submission of additional oral statements/further evidence - Responding to questionnaires - Making employees and directors available for interviews 9

October 2, 2014Kyowa Sogo Law Offices To reduce prices products on a voluntary basis How about a proposal to reduce prices of products on a voluntary basis? - Recent cases in China Does it work in cartel cases? 10

October 2, 2014Kyowa Sogo Law Offices To reduce prices products on a voluntary basis From a company’s perspective - Is it practically and/or commercially feasible? Impacts on leniency application  Pros - May serve as evidence of termination of involvement in the cartel - May serve as mitigating factor in setting the fines (?)  Cons - May be used as evidence that the cartel had actual impacts on the market and as support for higher fines 11

October 2, 2014Kyowa Sogo Law Offices To reduce prices products on a voluntary basis Impacts on civil litigation  Cons - May be used as evidence by plaintiffs to prove damages 12

October 2, 2014Kyowa Sogo Law Offices To reduce prices products on a voluntary basis Factors to take into account in deciding whether to implement the corrective measure as part of on- going cooperation - Identify which jurisdiction will be affected by the price reduction of products and how affected  Weigh the pros and cons – very tough task 13

October 2, 2014Kyowa Sogo Law Offices Thank you Tomohiko Kimura Kyowa Sogo Law Offices Osaka, Tokyo 14