1. Key Elements to a Successful Anti-Cartel Program
Ann O’Brien
Senior Counsel
Antitrust Division, U.S. Department of Justice
NDRC International Conference on Anti-monopoly
Agreements Concerning Pricing
June 1, 2011
Beijing, China

2. Key Elements of an Effective Anti-Cartel Enforcement Program
Clear Enforcement Policies
Commitment to Consistent Enforcement
Effective Leniency Programs

3. Clear Enforcement Policies
Define cartel conduct
Bring cartel cases that establish bright lines
Transparent and predictable enforcement encourages cooperation

4. Clear Enforcement Policies
Explicit and Public Standards and Policies
In the U.S. We Strive for Transparency In:
Decision to Open an Investigation
Decision to File a Case
Prosecutorial Priorities
Settlement Negotiations
Sentencing and Fine Calculation (Proportionality)
Our Leniency Program

5. Preventing Price-Fixing Cartels
Most fundamental responsibility of antitrust enforcement officials
It is also one of the most difficult, because cartels almost always try to hide their actions

6. Leniency: Most Important Tool for Uncovering Price-Fixing Cartels
Gives full immunity to first qualifying cartel member to confess and cooperate – no penalties or punishment of corporation or its executives
Powerful tool for detecting cartels
Creates race to report
Creates distrust in cartels
Creates incentives to defect from cartels
Most large U.S. cartel cases involve leniency applications

7. The Benefits of Leniency for Anti-Cartel Enforcers
Detection of Secret Cartels Ends Harm to Consumers
Investigations Shortened
Enforcer Resources Saved
Access to Documents/Witnesses

8. U.S. Lessons Learned: Implementing an Effective Leniency Program
Inclusive rather than exclusive policy
Create incentives/avoid disincentives to reporting
maintain confidentiality
Predictable and transparent policies
company needs to be able to predict if it will qualify for leniency and how it will be treated if it applies

9. An Effective Anti-Cartel Program
Detects Cartel Activity and Ends Harms to
Businesses and Consumers