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{\nofcharsws24875}{\vern24703}}{\*\userprops {\propname _AdHocReviewCycleID}\proptype3{\staticval -1556205637}{\propname _EmailSubject}\proptype30{\staticval ACCC enforcement conference - paper from Emil Paulis}{\propname _AuthorEmail}\proptype30 {\staticval Steve.Ryan@cec.eu.int}{\propname _AuthorEmailDisplayName}\proptype30{\staticval RYAN Stephen (COMP)}{\propname _ReviewingToolsShownOnce}\proptype30{\staticval }}\paperw11906\paperh16838\margl1417\margr1417\margt1417\margb1417 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1417\dgvorigin1417\dghshow1\dgvshow1 \jexpand\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\nojkernpunct\rsidroot10958809 \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\insrsid2498389 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql 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Co-operation against cartels \par }{\b\f1\lang1024\langfe1024\langnp2060\insrsid10958809\charrsid15994696 \par Emil Paulis \par \par Director, Competition Directorate General, European Commission \par \par }{\b\f1\insrsid10958809\charrsid15994696 ACCC conference on Cracking Cartels, Sydney 24 November 2004 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid10958809\charrsid15994696 \par \par }{\f143\ul\noproof0\insrsid10958809\charrsid15994696 Introduction \par }{\insrsid10958809\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid13792946 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 1.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid985977\charrsid15994696 Over the last few years }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid985977\charrsid15994696 between competition agencies has become part of the daily life of competition agencies, in particular with regard to cartels.}{\insrsid985977\charrsid15994696 }{\f143\noproof0\insrsid13973024\charrsid15994696 It is definitely one of }{ \f144\noproof0\insrsid13973024\charrsid15994696 the}{\f143\noproof0\insrsid3816038\charrsid15994696 key}{\f143\noproof0\insrsid13973024\charrsid15994696 topics for the future of cartel enforcement. International co-operation in cartel cases is a necessity given that we are increasingly faced with cartels that have a truly global dimension. \par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid13973024 {\f143\noproof0\insrsid13973024\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid3816038 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 2.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid3816038\charrsid15994696 Two}{\f143\noproof0\insrsid13973024\charrsid15994696 main forms of international co-operation that will render the fight against cartels more effective}{\f143\noproof0\insrsid3816038\charrsid15994696 can be discerned}{\f143\noproof0\insrsid13973024\charrsid15994696 . }{\f143\noproof0\insrsid15994696\charrsid15994696 Firstly, there is co-operation as regards the principles that are to be applied in the pursuit of hard-core }{ \f143\noproof0\insrsid15994696 c}{\f143\noproof0\insrsid15994696\charrsid15994696 artels. }{\f143\noproof0\insrsid1724197\charrsid15994696 Discussions on this take place mainly within organisations such as the OECD and the relatively new ICN (International Com}{\f143\noproof0\insrsid1724197 petition Network), of which the}{\f143\noproof0\insrsid1724197\charrsid15994696 Commission is one of the main sponsors. }{\f143\noproof0\insrsid13973024\charrsid15994696 All of these initiatives serve the useful purpose of arriving }{\f143\noproof0\insrsid13777689\charrsid15994696 at}{ \f143\noproof0\insrsid13973024\charrsid15994696 commonly accepted standards of scrutiny when it comes to hard-core cartels, and it is important that these various initiatives be continued.}{\f143\noproof0\insrsid3816038\charrsid15994696 }{ \f143\noproof0\insrsid13973024\charrsid15994696 A second form of co-operation }{\f143\noproof0\insrsid3816038\charrsid15994696 is that}{\f143\noproof0\insrsid13973024\charrsid15994696 regard}{\f143\noproof0\insrsid3816038\charrsid15994696 ing}{ \f143\noproof0\insrsid13973024\charrsid15994696 actual cases}{\f143\noproof0\insrsid8092530\charrsid15994696 (which may involve two or more competition authorities depending on the case)}{\f143\noproof0\insrsid13973024\charrsid15994696 . }{ \f143\noproof0\insrsid3816038\charrsid15994696 \par }{\f143\noproof0\insrsid8092530\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8092530 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 3.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid8092530\charrsid15994696 It is also worth emphasising that no matter how good is the co-operation between specific competition jurisdictions i n individual cases (which is dealt with later in this paper), the fight against cartels cannot be fully effective if cartels enjoy \'93safe havens\'94 in which to carry out their nefarious activity. In addition, given globalisation, it is likely that a cartel in one jurisdiction may have knock-on effects in another, through re-exporting or the use of cartelised products as parts in finished goods. That is why the EU, and many other jurisdictions, }{\f143\noproof0\insrsid1724197\charrsid15994696 has}{ \f143\noproof0\insrsid8092530\charrsid15994696 been encouraging developing countries and economies in transiti on to adopt competition laws involving a prohibition of cartels. Even if the enforcement capacity of many such jurisdictions is inevitably limited at the beginning, it is important to send the message to cartels that there is \'93no place to hide\'94. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8092530 {\f143\noproof0\insrsid8092530\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8092530 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 4.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid8092530\charrsid15994696 The number of jurisdictions with anti-cartel laws is constantly increasing, well over a hundred so far. As examples, Jordan has just adopted a competition law, the draft law of Vietnam is well advanced towards adoption, and Singapore is also in the pr ocess of preparing such a law. Perhaps most importantly of all, China is working on its draft competition law, which }{\f143\noproof0\insrsid6364653\charrsid15994696 it is anticipated}{\f143\noproof0\insrsid8092530\charrsid15994696 , will prohibit cartels from one of the world\rquote s largest and fastest-growing economies. The greater the number of jurisdictions with anti-cartel legislation, the greater the potential for, and importance of, co-operation between them. \par }\pard \qj \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid3816038 {\f143\noproof0\insrsid8092530\charrsid15994696 \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 5.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid3816038\charrsid15994696 This paper describes the experience of DG Competition of the European Commission with such co-operation, both on the principles and the practice of fighting cartels}{\f143\noproof0\insrsid12602433\charrsid15994696 . The focus will be on the increasing level of }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid12602433\charrsid15994696 in recent years, without skating over the work still to be done and gaps to be filled. }{ \f143\fs20\noproof0\insrsid13973024\charrsid15994696 \par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid13973024 {\f143\fs20\noproof0\insrsid13973024\charrsid15994696 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid13973024\charrsid15994696 \par }{\f143\ul\noproof0\insrsid8092530\charrsid15994696 C}{\f143\ul\noproof0\insrsid13973024\charrsid15994696 o-operation }{\f143\ul\noproof0\insrsid8092530\charrsid15994696 within multilateral organisations}{ \f143\ul\noproof0\insrsid13973024\charrsid15994696 \par }{\f143\noproof0\insrsid985977\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11219954 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 6.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid11219954\charrsid15994696 Among juris dictions which have competition laws and authorities, it is essential to exchange experiences with a view to improving the effectiveness of our fight against cartels. A number of multilateral organisations are active in this area}{ \f143\noproof0\insrsid2057493\charrsid15994696 , and the European Commission is deeply involved in their work}{\f143\noproof0\insrsid11219954\charrsid15994696 . \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\f143\noproof0\insrsid11219954\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13792946 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 7.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid11219954\charrsid15994696 Most recently, the International Competition Network }{\f143\noproof0\insrsid985977\charrsid15994696 c}{\f143\noproof0\insrsid11219954\charrsid15994696 reated}{\f143\noproof0\insrsid985977\charrsid15994696 }{\f143\noproof0\insrsid11219954\charrsid15994696 a working group on cartels}{\f143\noproof0\insrsid2057493\charrsid15994696 , which is co-chaired by DG Competition of the European Commission and the Hungarian Office of Economic Competition}{\f143\noproof0\insrsid985977\charrsid15994696 . The }{\f143\noproof0\insrsid12602433\charrsid15994696 ICN cartels }{ \f143\noproof0\insrsid985977\charrsid15994696 working group focuses its work on two main areas: the principles of the fight against cartels, and techniques for detecting and investigating cartels. }{\f143\noproof0\insrsid8092530\charrsid15994696 By}{ \f143\noproof0\insrsid985977\charrsid15994696 the time of the next ICN conference in Bonn in June 2005, in order to give the business and legal community an idea of the work being done}{\f143\noproof0\insrsid8092530\charrsid15994696 , the working group will present the results of a number }{\f143\noproof0\insrsid11219954\charrsid15994696 of important projects. On the principles of the fight against cartels, these include}{\f143\noproof0\insrsid8092530\charrsid15994696 the }{ \f143\noproof0\insrsid11219954\charrsid15994696 definition of hard-core cartels, }{\f143\noproof0\insrsid4733219\charrsid15994696 the }{\f143\noproof0\insrsid8092530\charrsid15994696 most effective institutional set-up for the fight against cartels, }{ \f143\noproof0\insrsid11220138 and }{\f143\noproof0\insrsid8092530\charrsid15994696 effective sanctions against cartels}{\f143\noproof0\insrsid11219954\charrsid15994696 . On detection and investigation techniques, the projects include evidence-gathering, and immunity/leniency programmes.}{\f143\noproof0\insrsid13788496\charrsid15994696 From the point of view of DG Competition, the ICN ca rtels working group is one of the most important international initiatives in cartels }{\f143\noproof0\insrsid1584436\charrsid15994696 in recent years, and we have mad}{\f143\noproof0\insrsid13788496\charrsid15994696 e available considerable human resources in order to make it a success.}{\f143\noproof0\insrsid985977\charrsid15994696 \par }{\f143\noproof0\insrsid8092530\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11219954 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 8.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid8092530\charrsid15994696 The OECD also plays an important role in this area}{\f143\noproof0\insrsid11219954\charrsid15994696 , both through its Recommendations, which set a benchmark for inter-agency co-operation, and through }{\f143\noproof0\insrsid11220138 the added value of its meetings}{\f143\noproof0\insrsid11219954\charrsid15994696 }{ \f143\noproof0\insrsid4733219\charrsid15994696 i}{\f143\noproof0\insrsid11220138 n the Competition Committee}{\f143\noproof0\insrsid11219954\charrsid15994696 and the Global Forum on Competition}{\f143\noproof0\insrsid2057493\charrsid15994696 , where essential issues in the fight against cartels are discussed}{\f143\noproof0\insrsid11219954\charrsid15994696 . }{\f143\noproof0\insrsid1724197\charrsid15994696 DG Competition of the Commission plays an active part in those forums}{ \cs16\f143\super\noproof0\insrsid1724197\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 { \cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 EU institutions are fully integrated into OECD bodies, despite the EU not being an OECD Member State as such.}}}{\f143\noproof0\insrsid1724197 .}{ \f143\noproof0\insrsid1724197\charrsid15994696 The key OECD Recommendations are the 1995 Recommendation on co-operation between member countries on anticompetitive practices affecting international trade, and the 1998 Recom mendation concerning effective action against hard core cartels. }{\f143\noproof0\insrsid11219954\charrsid15994696 The OECD is also working on draft Recommended Practices on formal exchange of information between Competition authorities in international hardcore cartel investigations.}{\f143\noproof0\insrsid3155080\charrsid15994696 The OECD\rquote s work on d efining hard-core cartels and determining the harm which they do is also o}{\f143\noproof0\insrsid8989424\charrsid15994696 f crucial importance in underpi}{\f143\noproof0\insrsid3155080\charrsid15994696 nning }{ \f143\noproof0\insrsid8989424\charrsid15994696 national efforts to detect and sanction cartels.}{\f143\noproof0\insrsid8092530\charrsid15994696 \par }{\f143\noproof0\insrsid9646310\charrsid15994696 \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 9.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6947176\charrsid15994696 The work of UNCTAD in cartels, as well as including technical assistance to developing }{\f143\noproof0\insrsid8989424\charrsid15994696 countries}{\f143\noproof0\insrsid6947176\charrsid15994696 drafting}{\f143\noproof0\insrsid3155080\charrsid15994696 a cartel law for the first time}{\f143\noproof0\insrsid6947176\charrsid15994696 , includes discussion of the issue of co-operation between agencies in cartel investigati}{\f143\noproof0\insrsid3155080\charrsid15994696 o}{ \f143\noproof0\insrsid6947176\charrsid15994696 ns, especially with regard to younger agencies which lack resources. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\f143\noproof0\insrsid13973024\charrsid15994696 \par }{\f143\ul\noproof0\insrsid985977\charrsid15994696 Co-operation in individual cartel investigations}{\f143\ul\noproof0\insrsid13973024\charrsid15994696 \par }{\f143\noproof0\insrsid985977\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13792946 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 10.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid10315630\charrsid15994696 It may be useful to categorise }{\f143\noproof0\insrsid6049789\charrsid15994696 the }{\f143\noproof0\insrsid7306094\charrsid15994696 types of }{ \f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid7306094\charrsid15994696 }{\f143\noproof0\insrsid6049789\charrsid15994696 which }{\f143\noproof0\insrsid7306094\charrsid15994696 exist}{ \f143\noproof0\insrsid6049789\charrsid15994696 , according to the stage of the investigation at which they occur}{\f143\noproof0\insrsid7306094\charrsid15994696 : co-operation before inspections (exchange of informal \'93tips\'94 etc), co-operation in the organisation of inspections, post-inspection exchange of information}{\f143\noproof0\insrsid6049789\charrsid15994696 .}{\f143\noproof0\insrsid7306094\charrsid15994696 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\f143\noproof0\insrsid7306094\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13792946 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 11.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6049789\charrsid15994696 From the point of view of the European Commission, when it comes to }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{ \f143\noproof0\insrsid6049789\charrsid15994696 in cartel investi}{\f143\noproof0\insrsid12602433\charrsid15994696 g}{\f143\noproof0\insrsid6049789\charrsid15994696 ati}{\f143\noproof0\insrsid6897037\charrsid15994696 o}{ \f143\noproof0\insrsid6049789\charrsid15994696 ns, it is possible to divide}{\f143\noproof0\insrsid13569019\charrsid15994696 the world into four regions, depending on the level of formality of the co-operation with the Commission. However, it should be emphasised that }{\f143\noproof0\insrsid7306094\charrsid15994696 the level of }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{ \f143\noproof0\insrsid7306094\charrsid15994696 is not necessarily proportionate to the level of formality in the Commission\rquote s relations with an authority.}{\f143\noproof0\insrsid10958809\charrsid15994696 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\f143\noproof0\insrsid10958809\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\ul\noproof0\insrsid10958809\charrsid15994696 Within the EU}{\f143\ul\noproof0\insrsid1013614\charrsid15994696 \endash }{ \f143\ul\noproof0\insrsid10958809\charrsid15994696 E}{\f143\ul\noproof0\insrsid1013614\charrsid15994696 uropean }{\f143\ul\noproof0\insrsid10958809\charrsid15994696 C}{\f143\ul\noproof0\insrsid1013614\charrsid15994696 ompetition }{ \f143\ul\noproof0\insrsid10958809\charrsid15994696 N}{\f143\ul\noproof0\insrsid1013614\charrsid15994696 etwork}{\f143\ul\noproof0\insrsid10958809\charrsid15994696 \par }{\f143\noproof0\insrsid10958809\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 12.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6049789\charrsid15994696 It should perhaps be remarked at the outset that we in DG Competition of the European Commission do not tend to think of co-operation between ourselves and the competition authorities of the EU }{\f143\noproof0\insrsid1724197 Member States}{ \f143\noproof0\insrsid6049789\charrsid15994696 as \'93international co-operation\'94. That is itself a sign of how integrated the EU \'93family\'94 of competit}{\f143\noproof0\insrsid6897037\charrsid15994696 io}{ \f143\noproof0\insrsid6049789\charrsid15994696 n authorities has become. }{\f143\noproof0\insrsid10822459\charrsid15994696 The Competition rules in the EU treaty, and the procedural Rules adopted by Council Regulation, constitute a single set of rules applicable throughout the EU, making the EU one single jurisdiction with many competition authorities. In line with this, f}{ \f143\noproof0\insrsid6049789\charrsid15994696 or us, the word \'93international\'94 refers to relations between the EU an}{\f143\noproof0\insrsid10822459\charrsid15994696 d jurisdictions outside the EU}{\f143\noproof0\insrsid6049789\charrsid15994696 . }{ \f143\noproof0\insrsid10822459\charrsid15994696 However, it is useful in this paper to explain how co-operation works within the EU, as an example of a particularly developed level of co-operation.}{\f143\noproof0\insrsid6049789\charrsid15994696 \par }{\f143\noproof0\insrsid6897037\charrsid15994696 \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 13.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6897037\charrsid15994696 The level of co-operation between DG Competition and the national competition authorities in cartel investigations has always been high, but since 1 May 2004, when the EU\rquote s new anti-trust procedural regulation (known as the \'93modernisation\'94 }{ \f143\noproof0\insrsid1275348\charrsid15994696 Regulation}{\f143\noproof0\insrsid6897037\charrsid15994696 ) entered into force, co-operation is enhanced further by the creation of the \'93European Competit}{\f143\noproof0\insrsid5918686\charrsid15994696 io}{\f143\noproof0\insrsid6897037\charrsid15994696 n Network\'94. \par \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 14.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6897037\charrsid15994696 Even before the entry into force of modernisation, the national competition authorities would play a key role in the preparation and execution of surprise inspections (\'93dawn raids\'94) on their national territory. }{ \f143\noproof0\insrsid4879885\charrsid15994696 This }{\f143\noproof0\insrsid2773007\charrsid15994696 role }{\f143\noproof0\insrsid4879885\charrsid15994696 includes for example using national law (and if necessary law enforcement officers) }{ \f143\noproof0\insrsid2773007\charrsid15994696 to bring about submission, }{\f143\noproof0\insrsid4879885\charrsid15994696 if the undertaking in question does not submit to an inspection decision under EU law}{ \f143\noproof0\insrsid2773007\charrsid15994696 . Also, b}{\f143\noproof0\insrsid13530363\charrsid15994696 efore the arrival of DG Competit}{\f143\noproof0\insrsid13792946\charrsid15994696 i}{\f143\noproof0\insrsid13530363\charrsid15994696 on staff, the national authority }{\f143\noproof0\insrsid2773007\charrsid15994696 normally }{\f143\noproof0\insrsid13530363\charrsid15994696 checks out the area of the premises to be investigated, in order not to lose }{ \f143\noproof0\insrsid13792946\charrsid15994696 valuable }{\f143\noproof0\insrsid13530363\charrsid15994696 time at the wrong entrance, for example. During the inspection, the staff of the national authority play a full part in the inspecting team alongside their counterparts from DG Competition. }{\f143\noproof0\insrsid6897037\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid6049789\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid11156305 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 15.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid13530363\charrsid15994696 There is a very large number of examples of simultaneous inspections on premises in a number of different EU }{\f143\noproof0\insrsid1724197 Member States}{\f143\noproof0\insrsid13530363\charrsid15994696 successfully}{\f143\noproof0\insrsid13792946\charrsid15994696 }{\f143\noproof0\insrsid15673785\charrsid15994696 co-ord}{\f143\noproof0\insrsid13792946\charrsid15994696 inated and }{ \f143\noproof0\insrsid1275348\charrsid15994696 executed}{\f143\noproof0\insrsid13792946\charrsid15994696 by DG}{\f143\noproof0\insrsid13530363\charrsid15994696 Competition and the national competition authorities}{ \f143\noproof0\insrsid14357009\charrsid15994696 . }{\f143\noproof0\insrsid2773007\charrsid15994696 To give just one}{\f143\noproof0\insrsid14357009\charrsid15994696 example, the inspections in the heat stabilisers/impact modifiers cases in February 2003} {\f143\noproof0\insrsid5009004\charrsid15994696 involved surprise visits to fourteen companies in six different Member States (not to mention the inspections in the USA Canada and Japan }{\f143\noproof0\insrsid13788496\charrsid15994696 of which we talk}{ \f143\noproof0\insrsid5009004\charrsid15994696 below).}{\f143\noproof0\insrsid10958809\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid7096082\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5918686 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 16.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid13530363\charrsid15994696 As mentioned, since our modernisation, the level of }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{ \f143\noproof0\insrsid13530363\charrsid15994696 has been enhanced}{\cs16\f143\super\noproof0\insrsid10692718\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 The \'93modernisation\'94 has increased the Commission\rquote s powers to investigate in cartel cases, for exemple by granting it the power to inspect private homes of members of staff of an undertaking.However, such changes which do not directly relate to co-operation between competition authorities are not dealt wi th in this paper.}}}{\f143\noproof0\insrsid13530363\charrsid15994696 . One key element of this is the possibility for one national authority to request assistance from another national authority, which did not exist previously. A national authority can now carry out an inspection under its national law on behalf of another national authority, in order to help it with an investigation}{\f143\fs20\super\noproof0\insrsid13530363\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{ \lang1024\langfe1024\langnp1036\insrsid4728395\charrsid2255092 }{\lang1024\langfe1024\langnp2060\insrsid4728395\charrsid2255092 Regulation (EC) 1/2003, article 22.1}}}{\f143\noproof0\insrsid13530363\charrsid15994696 . }{\f143\noproof0\insrsid11220138 S}{ \f143\noproof0\insrsid11156305\charrsid15994696 ince the modernised Regulation came into force there }{\f143\noproof0\insrsid15994696\charrsid15994696 has}{\f143\noproof0\insrsid11156305\charrsid15994696 been }{ \f143\noproof0\insrsid15994696\charrsid15994696 at least one case so far}{\f143\noproof0\insrsid11156305\charrsid15994696 of a national competition authority }{\f143\noproof0\insrsid10430052\charrsid15994696 carrying}{ \f143\noproof0\insrsid11156305\charrsid15994696 out }{\f143\noproof0\insrsid10430052\charrsid15994696 inspections}{\f143\noproof0\insrsid11156305\charrsid15994696 on beh}{\f143\noproof0\insrsid13788496\charrsid15994696 alf of another EU Member State}{ \f143\noproof0\insrsid11220138 on this basis}{\f143\noproof0\insrsid13788496\charrsid15994696 .}{\f143\noproof0\insrsid11156305\charrsid15994696 }{\f143\noproof0\insrsid13530363\charrsid15994696 The Commission can also request a national authority to undertake an inspection under national law}{\f143\noproof0\insrsid15994696\charrsid15994696 , and this has also been done once}{\f143\fs20\super\noproof0\insrsid13530363\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{ \lang1024\langfe1024\langnp1036\insrsid4728395\charrsid2255092 }{\lang1024\langfe1024\langnp2060\insrsid4728395\charrsid2255092 Regulation (EC) 1/2003, article 22.2}}}{\f143\noproof0\insrsid13530363\charrsid15994696 .}{ \f143\noproof0\insrsid593872\charrsid15994696 }{\f143\noproof0\insrsid13530363\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid5918686\charrsid15994696 \par }\pard\plain \s17\qj \li720\ri0\sa120\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5918686 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\field\flddirty{\*\fldinst { \f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 17.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid5918686\charrsid15994696 The modernisation ha s also created a network of competition authorities in the EU, known as the European Competition Network (not to be confused }{\f143\noproof0\insrsid13788496\charrsid15994696 with }{\f143\noproof0\insrsid5918686\charrsid15994696 the International Competition Network). Since this paper is focussed on }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid5918686\charrsid15994696 in cartel cases specifically, it is not p ossible to give a full account of all the workings of the ECN, only a summary. The}{\f143\noproof0\insrsid13792946\charrsid15994696 }{\f143\noproof0\insrsid5918686\charrsid15994696 ECN is the framework for the intense }{ \f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid5918686\charrsid15994696 required to ensure a correct case allocation and a consistent application of the EU\rquote s competition rules. As regards cartel investigations, it is worth pointing out in particular that the authorities have the power to exchange confidential information, }{\f143\noproof0\insrsid593872\charrsid15994696 and }{\f143\noproof0\insrsid5918686\charrsid15994696 to use such information as evidence in their respective proceedings and }{\f143\noproof0\insrsid4473257\charrsid15994696 t}{\f143\noproof0\insrsid593872\charrsid15994696 hat they }{\f143\noproof0\insrsid5918686\charrsid15994696 are subject to various information obligations in their cases. The ECN is a flexible and informal network: it does not take \lquote decisions\rquote and cannot compel its members to act in a certain way. It is, however, expected that the constructive character of the discussions will help solve most of the is sues which may arise. Should a deadlock occur, the Commission retains the power to relieve national competition authorities of their competence by opening proceedings. \par }\pard\plain \qj \li720\ri0\sa240\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14357009 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 18.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid15167894\charrsid15994696 An interactive software tool allows all members of the ECN to find informat ion on the cases of other network members on which a formal procedure is open. Of course, information about inspections is not entered in the application before the inspections; however, national competition authorities envisaging inspections are encourag e d to have informal contacts prior to inspections to ensure that envisaged inspections of other authorities are not undermined (the underlying consideration being that once an inspection has taken place in one Member State, it is likely that evidence will be destroyed in other Member States). \par }\pard\plain \s17\qj \li720\ri0\sa240\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14357009 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\field\flddirty{\*\fldinst { \f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 19.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid5918686\charrsid15994696 The possibility to exchange confidential information }{\f143\noproof0\insrsid593872\charrsid15994696 between EU competition authorities }{\f143\noproof0\insrsid5918686\charrsid15994696 without the consent of the parties is to our knowledge unique in }{ \f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid5918686\charrsid15994696 arrangements between competition authorities}{\cs16\f143\super\noproof0\insrsid593872\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 With the exception of exchange between the Commission and the ESA under the European Economic Area agreement, see below.}}}{\f143\noproof0\insrsid5918686\charrsid15994696 , and considerably enhances the power of EU competition authorities to deal with cartels. However, it is subject to certain limits, in particular due to the fact that certain national jurisdictions within the EU have criminal sanctions for infringemen ts of competition law, while others do not. Information exchanged must be used for the same purpose as that for which it was collected, }{\f143\noproof0\insrsid13788496\charrsid15994696 and }{\f143\noproof0\insrsid11220138 normally }{ \f143\noproof0\insrsid5918686\charrsid15994696 only}{\f143\noproof0\insrsid1584436\charrsid15994696 for the application of EU competition law. }{\f143\noproof0\insrsid11220138 However, where national competition law is being applied in the same case, i}{ \f143\noproof0\insrsid1584436\charrsid15994696 nformation exchanged can }{\f143\noproof0\insrsid11220138 also}{\f143\noproof0\insrsid1584436\charrsid15994696 be used for applying national }{\f143\noproof0\insrsid11156832\charrsid15994696 competition}{ \f143\noproof0\insrsid11220138 law, but only}{\f143\noproof0\insrsid5918686\charrsid15994696 in so far as national law does not lead to a different outcome from the application of }{\f143\noproof0\insrsid1275348\charrsid15994696 European}{ \f143\noproof0\insrsid5918686\charrsid15994696 competition law }{\f143\noproof0\insrsid13788496\charrsid15994696 in the case. Furthermore, information thus exchanged}{\f143\noproof0\insrsid2099817\charrsid15994696 can only}{ \f143\noproof0\insrsid5918686\charrsid15994696 be used for the imposition of sanctions on natural persons}{\f143\noproof0\insrsid2099817\charrsid15994696 when the two jurisdictions apply }{\f143\noproof0\insrsid13462792\charrsid15994696 similar}{ \f143\noproof0\insrsid2099817\charrsid15994696 kinds of sanctions, or, failing that, if the }{\f143\noproof0\insrsid13462792\charrsid15994696 information has been collected in a way that respects the same level of protection of the rights of defence of natural persons as the receiving authority. However, in this latter case, i}{\f143\noproof0\insrsid2099817\charrsid15994696 nformation exchanged between EU competition authorities cannot be used to impose custodial sanctions on natural persons}{\f143\fs20\super\noproof0\insrsid5918686\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 Regulation (EC) 1/2003, article 12.}}}{\f143\noproof0\insrsid5918686\charrsid15994696 . \par }\pard \s17\qj \li720\ri0\sa120\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid5918686 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 20.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid14357009\charrsid15994696 Furthermore,}{\f143\noproof0\insrsid15167894\charrsid15994696 in order to ensure }{\f143\noproof0\insrsid14357009\charrsid15994696 the good }{ \f143\noproof0\insrsid15167894\charrsid15994696 functioning of leniency programmes it is important that information o}{\f143\noproof0\insrsid14357009\charrsid15994696 btained from a leniency applicant}{\f143\noproof0\insrsid15167894\charrsid15994696 cannot be used against }{\f143\noproof0\insrsid14357009\charrsid15994696 that }{\f143\noproof0\insrsid15167894\charrsid15994696 leniency applicant by another authority}{\f143\noproof0\insrsid5009004\charrsid15994696 . Considerable work has been done within the ECN to minimise any negative consequences }{\f143\noproof0\insrsid6959971\charrsid15994696 resulting from the lack of harmo}{\f143\noproof0\insrsid5009004\charrsid15994696 nisation of leniency programmes (indeed, not all Member States have leniency programmes). I}{\f143\noproof0\insrsid14357009\charrsid15994696 n practice, this means that the}{\f143\noproof0\insrsid15167894\charrsid15994696 authority }{ \f143\noproof0\insrsid14357009\charrsid15994696 receiving the information from the authority to which the leniency application was made }{\f143\noproof0\insrsid15167894\charrsid15994696 must give }{\f143\noproof0\insrsid14357009\charrsid15994696 a }{ \f143\noproof0\insrsid15167894\charrsid15994696 guarantee that it will not use information }{\f143\noproof0\insrsid14357009\charrsid15994696 (}{\f143\noproof0\insrsid15167894\charrsid15994696 and all information gathered thereafter}{ \f143\noproof0\insrsid14357009\charrsid15994696 )}{\f143\noproof0\insrsid15167894\charrsid15994696 against }{\f143\noproof0\insrsid14357009\charrsid15994696 the leniency }{\f143\noproof0\insrsid15167894\charrsid15994696 applicant}{ \f143\noproof0\insrsid1584436\charrsid15994696 . The result of this is}{\f143\noproof0\insrsid15167894\charrsid15994696 a de facto immunity for the leniency applicant also in the receiving Member State.}{\f143\noproof0\insrsid14357009\charrsid15994696 } {\f143\noproof0\insrsid5009004\charrsid15994696 Each authority receives information about leniency applications submitted to one or more other authorities in the network, and all authorities in the ECN hav}{\f143\noproof0\insrsid13974628\charrsid15994696 e signed a declaration that they}{\f143\noproof0\insrsid5009004\charrsid15994696 will not use this information to start proceedings against the leniency applicant}{\cs16\f143\super\noproof0\insrsid13974628\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13974628 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\insrsid4728395\charrsid2255092 \chftn These principles are described by the Commission in its Notice about co-operation within the ECN: Commission Notice on Co-operation within the Network of Competition Authorities, Official Journal C101/43 of 27/4/2004. Section 2.3.3. For more details see also the article \'93Leniency following modernisation; safeguarding Europe\rquote s leniency programmes\'94 by S. Blake and D. Schnichels, Competition policy Newsletter, 2004/2}}}{\f143\noproof0\insrsid5009004\charrsid15994696 .}{ \f143\noproof0\insrsid8157602\charrsid15994696 }{\f143\noproof0\insrsid8932672\charrsid15994696 The remaining outstanding issues within the ECN as regards leniency programmes are the lack }{\f143\noproof0\insrsid10430052\charrsid15994696 of}{ \f143\noproof0\insrsid8932672\charrsid15994696 a \'93one stop shop\'94 (an applicant has to go to all the Member States possibly concerned), }{\f143\noproof0\insrsid6959971\charrsid15994696 and }{\f143\noproof0\insrsid8932672\charrsid15994696 no \'93 stopping the clock\'94 (a leniency application in one Member State does not stop the clock in all other Member States operating a leniency programme).}{\f143\noproof0\insrsid8157602\charrsid15994696 }{\f143\noproof0\insrsid15167894\charrsid15994696 \par }\pard\plain \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 \fs24\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\f143\noproof0\insrsid10958809\charrsid15994696 \par }{\f143\ul\noproof0\insrsid2498340\charrsid15994696 European Economic Area}{\f143\ul\noproof0\insrsid10958809\charrsid15994696 \par }{\f143\noproof0\insrsid2427906\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid593872 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 21.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid2427906\charrsid15994696 Outside the EU, but very closely linked to it, are the }{\f143\noproof0\insrsid8157602\charrsid15994696 three non-EU member }{ \f143\noproof0\insrsid2427906\charrsid15994696 countries of the European Economic Area (EEA), }{\f143\noproof0\insrsid8157602\charrsid15994696 which consists of the EU }{\f143\noproof0\insrsid1973804\charrsid15994696 plus }{ \f143\noproof0\insrsid2427906\charrsid15994696 Norway, Iceland and Liechtenstein. The agreement }{\f143\noproof0\insrsid1054592\charrsid15994696 creating the EEA }{\f143\noproof0\insrsid2427906\charrsid15994696 contains competition provisions }{ \f143\noproof0\insrsid1973804\charrsid15994696 identical to those in the EU Treaty}{\f143\noproof0\insrsid2427906\charrsid15994696 . }{\f143\noproof0\insrsid1054592\charrsid15994696 The EEA agreement designates two competition authorities responsible for implementing its competition provisions, the European Commission and }{\f143\noproof0\insrsid1973804\charrsid15994696 the }{\f143\noproof0\insrsid1054592\charrsid15994696 EF}{ \f143\noproof0\insrsid11220138 TA Surveillance Authority (ESA);}{\f143\noproof0\insrsid1054592\charrsid15994696 however those authorities will not deal concurrently with the same case, it will always be allocated to one or the other. Each of them can request the other}{\f143\noproof0\insrsid1973804\charrsid15994696 to }{ \f143\noproof0\insrsid2427906\charrsid15994696 organise surprise inspections }{\f143\noproof0\insrsid1054592\charrsid15994696 on }{\f143\noproof0\insrsid15994696 their}{\f143\noproof0\insrsid1054592\charrsid15994696 respective territory}{ \f143\noproof0\insrsid15994696 (and send members of staff to participate in the inspections)}{\f143\noproof0\insrsid2427906\charrsid15994696 . }{\f143\noproof0\insrsid1054592\charrsid15994696 It is a logical consequence of this fact that t}{ \f143\noproof0\insrsid2427906\charrsid15994696 he exchange of confidential information between the Commission and }{\f143\noproof0\insrsid15994696 the ESA is also possible. T}{\f143\noproof0\insrsid10430052\charrsid15994696 here are no formalised relations}{\f143\noproof0\insrsid15994696 between the Commission and the}{\f143\noproof0\insrsid15994696\charrsid15994696 competition authorities }{\f143\noproof0\insrsid15994696 of }{ \f143\noproof0\insrsid15994696\charrsid15994696 Norway Iceland and Liechtenstein}{\f143\noproof0\insrsid10430052\charrsid15994696 ; the Commission\rquote s only interlocutor in competition matters for those countries is the ESA. }{ \f143\noproof0\insrsid1054592\charrsid15994696 T}{\f143\noproof0\insrsid2427906\charrsid15994696 he }{\f143\noproof0\insrsid1054592\charrsid15994696 ESA and the national authorities of Norway, Iceland and Liechtenstein }{ \f143\noproof0\insrsid2427906\charrsid15994696 are }{\f143\noproof0\insrsid1054592\charrsid15994696 however }{\f143\noproof0\insrsid2427906\charrsid15994696 not members of the European Competition Network. \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid2427906\charrsid15994696 \par }{\f143\ul\noproof0\insrsid4462543\charrsid15994696 Bilateral agreements \par }{\f143\noproof0\insrsid4462543\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6377970 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 22.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid10692718\charrsid15994696 Two kinds of bilateral agreements regarding competition between the EU and other jurisdicti}{\f143\noproof0\insrsid12602433\charrsid15994696 o}{ \f143\noproof0\insrsid10692718\charrsid15994696 ns can be distinguished. The first type, self-standing dedicated agreements on }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid10692718\charrsid15994696 in competition matters, only exist between the EU and three other jurisdictions, the USA}{\f143\noproof0\insrsid2099817\charrsid15994696 ,}{\f143\noproof0\insrsid10692718\charrsid15994696 Canada and Japan. The second type of agreement, which exists with a much wider range of jurisdictions, is a general agreement covering many areas \endash }{\f143\noproof0\insrsid12602433\charrsid15994696 F}{ \f143\noproof0\insrsid10692718\charrsid15994696 ree }{\f143\noproof0\insrsid12602433\charrsid15994696 Trade A}{\f143\noproof0\insrsid10692718\charrsid15994696 greement}{\f143\noproof0\insrsid12602433\charrsid15994696 s, A}{ \f143\noproof0\insrsid10692718\charrsid15994696 ssociation }{\f143\noproof0\insrsid12602433\charrsid15994696 A}{\f143\noproof0\insrsid10692718\charrsid15994696 greement and so on \endash which contains a chapter on competition matters. Normally, in this second category of agreement the provisions on competition are less far-reaching than those in the \'93dedicated\'94 competition agreements. \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid6377970\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12602433 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 23.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6377970\charrsid15994696 The dedicated competition agreements contain }{\f143\noproof0\insrsid593872\charrsid15994696 explicit}{\f143\noproof0\insrsid6377970\charrsid15994696 provisions on exchange of information and co-operation and co-ordinati}{\f143\noproof0\insrsid12602433\charrsid15994696 o}{\f143\noproof0\insrsid6377970\charrsid15994696 n of enforcement activities. For example, the EU/US agreement lays down that {\*\bkmkstart texte} \par }\pard \qj \li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid3155080 {\f143\noproof0\insrsid6377970\charrsid15994696 \'93}{\insrsid6377970\charrsid15994696 Each Party will provide the other Party with any significant information that comes to the attention of its competition authorities about anticompetitive activities that its competition authorities believe is relevant to, or may warrant, enforcement a ctivity by the other Party's competition authorities.{\*\bkmkend texte}\'94}{\cs16\super\insrsid6377970\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 Agreement between the European Communities and the Government of the United States of Amer ica regarding the application of their competition laws, as approved by Council and Commission decision {\*\bkmkstart 0}95/145/EC{\*\bkmkend 0} of 10/4/0995, article III.1.}}}{\insrsid6377970\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6377970 {\f143\noproof0\insrsid6377970\charrsid15994696 and that \par }\pard \qj \li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid3155080 {\insrsid6377970\charrsid15994696 \'93 The competition authorities of each Party will render assistance to the competition authorities of the other Party in their enforcement activities, to the extent compatible with the assistin g Party's laws and important interests, and within its reasonably available resources\'94}{\cs16\super\insrsid6377970\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 EC/US agreement referred to in previous footnote, article IV.1.}}}{\insrsid6377970\charrsid15994696 .}{ \f143\noproof0\insrsid6377970\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid6377970\charrsid15994696 \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 24.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6377970\charrsid15994696 However, the information exchange is limited to non-confidential information. Article VIII.1 of the EU/US agreement stipulates that}{\f143\noproof0\insrsid10692718\charrsid15994696 \par }\pard \qj \li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid3155080 {\insrsid6377970\charrsid15994696 Notwithstanding any o ther provision of this Agreement, neither Party is required to provide information to the other Party if disclosure of that information to the requesting Party (a) is prohibited by the law of the Party possessing the information, or (b) would be incompati ble with important interests of the Party possessing the information.}{\f143\noproof0\insrsid6377970\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid4462543\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12602433 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 25.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid6377970\charrsid15994696 C}{\f143\noproof0\insrsid4462543\charrsid15994696 o-operation }{\f143\noproof0\insrsid1584436\charrsid15994696 between the EU and}{ \f143\noproof0\insrsid6377970\charrsid15994696 the }{\f143\noproof0\insrsid4462543\charrsid15994696 USA}{\f143\noproof0\insrsid1584436\charrsid15994696 ,}{\f143\noproof0\insrsid4462543\charrsid15994696 Canada}{ \f143\noproof0\insrsid1584436\charrsid15994696 ,}{\f143\noproof0\insrsid4462543\charrsid15994696 }{\f143\noproof0\insrsid1584436\charrsid15994696 and }{\f143\noproof0\insrsid4462543\charrsid15994696 Japan in cartel investigations}{ \f143\noproof0\insrsid6377970\charrsid15994696 has been extensive and continues to be so}{\f143\noproof0\insrsid4462543\charrsid15994696 . }{\f143\noproof0\insrsid1973804\charrsid15994696 Co-ordinated inspections are an important aspe ct of this. For example, in the }{\f143\noproof0\insrsid5009004\charrsid15994696 heat stabilisers/}{\f143\noproof0\insrsid1973804\charrsid15994696 impact modifier}{\f143\noproof0\insrsid5009004\charrsid15994696 s}{ \f143\noproof0\insrsid1973804\charrsid15994696 case}{\f143\noproof0\insrsid12547697 already mentioned}{\f143\noproof0\insrsid1973804\charrsid15994696 , the Commission carried out its inspections in the European Union }{ \f143\noproof0\insrsid5009004\charrsid15994696 more or less }{\f143\noproof0\insrsid1973804\charrsid15994696 simultaneously }{\f143\noproof0\insrsid6453732\charrsid15994696 (allowing for the time difference) }{ \f143\noproof0\insrsid1973804\charrsid15994696 with the searches conducted by the Japan Fair Trade Commission, the US Department of Justice and the Canadian Competition Bureau in their respective jurisdictions}{ \f143\noproof0\insrsid11156305\charrsid15994696 .}{\f143\noproof0\insrsid4462543\charrsid15994696 \par }{\f143\noproof0\insrsid11156305\charrsid15994696 \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 26.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid11156305\charrsid15994696 Co-operation is naturally most effective where the companies under investigation grant a waiver, to allow confidential information to be exchanged. Although rare, this happened in the Christies/Sotheby\rquote s }{\f143\noproof0\insrsid12547697 auction houses }{\f143\noproof0\insrsid11156305\charrsid15994696 case, thus permitting more detailed discussions between the EU, US and Canadian authorities, and a more effective prosecution of the case. However, non-c onfidential information was also exchanged; for example}{\f143\noproof0\insrsid10436466\charrsid15994696 , the US authorities systematically transmitted the transcripts of the cross-examinations at the }{\f143\noproof0\insrsid16069126\charrsid15994696 Court proceedings}{\f143\noproof0\insrsid10436466\charrsid15994696 , which proved very useful}{\f143\noproof0\insrsid16069126\charrsid15994696 in the Commission\rquote s investigation}{\f143\noproof0\insrsid10436466\charrsid15994696 .}{ \f143\noproof0\insrsid11156305\charrsid15994696 \par }{\f143\noproof0\insrsid13194718\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid4462543\charrsid15994696 \par }{\f143\ul\noproof0\insrsid1275348\charrsid15994696 Jurisdictions}{\f143\ul\noproof0\insrsid4462543\charrsid15994696 with which }{\f143\ul\noproof0\insrsid12602433\charrsid15994696 the EU}{\f143\ul\noproof0\insrsid4462543\charrsid15994696 ha}{ \f143\ul\noproof0\insrsid12602433\charrsid15994696 s}{\f143\ul\noproof0\insrsid4462543\charrsid15994696 no formal bilateral co-operation \par }{\f143\noproof0\insrsid4462543\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 27.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid1724197\charrsid15994696 There are many jurisdictions in the world with which the EU does not have formalised co-operation arrangements in the competition field (although some o} {\f143\noproof0\insrsid1724197 f the EU Member}{\f143\noproof0\insrsid1724197\charrsid15994696 }{\f143\noproof0\insrsid1724197 S}{\f143\noproof0\insrsid1724197\charrsid15994696 tates might have co-operati on arrangements regarding their national competition law). }{\f143\noproof0\insrsid12810228\charrsid15994696 Some of those jurisdicti}{\f143\noproof0\insrsid10692718\charrsid15994696 o}{\f143\noproof0\insrsid12810228\charrsid15994696 ns are advanced ones, Australia being an obvious example.}{\f143\noproof0\insrsid4462543\charrsid15994696 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6049789 {\f143\noproof0\insrsid12810228\charrsid15994696 \par }\pard \qj \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15167894 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 28.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid12810228\charrsid15994696 What is important to emphasise }{\f143\noproof0\insrsid10692718\charrsid15994696 with regard to such jurisdictions }{ \f143\noproof0\insrsid12810228\charrsid15994696 is that the absence of formalised }{\f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid12810228\charrsid15994696 arrangements does not prevent any }{ \f143\noproof0\insrsid593872\charrsid15994696 co-operation}{\f143\noproof0\insrsid12810228\charrsid15994696 taking place in cartel investigations. }{\f143\noproof0\insrsid10692718\charrsid15994696 I}{\f143\noproof0\insrsid8157602\charrsid15994696 t}{ \f143\noproof0\insrsid10692718\charrsid15994696 simply means that such co-operation must be \'93informal}{\f143\noproof0\insrsid1584436\charrsid15994696 \'94}{\f143\noproof0\insrsid10692718\charrsid15994696 . }{ \f143\noproof0\insrsid6377970\charrsid15994696 In particular, it should be emphasised that the absence of a formal competition agreement does not prevent the exchange of non-confidential information, nor does it prevent co-ordination of surprise inspections.}{\f143\noproof0\insrsid3155080\charrsid15994696 Among jurisdictions which are OECD members, the 1995 OECD Recommendation on co-operation referred to above naturally applies.}{\f143\noproof0\insrsid13462792\charrsid15994696 }{\f143\noproof0\insrsid3155080\charrsid15994696 As an example, i}{ \f143\noproof0\insrsid15167894\charrsid15994696 n }{\f143\noproof0\insrsid12547697 at least one case}{\f143\noproof0\insrsid15167894\charrsid15994696 currently under investigation, there }{\f143\noproof0\insrsid12547697 has been}{ \f143\noproof0\insrsid15167894\charrsid15994696 regular inform}{\f143\noproof0\insrsid3155080\charrsid15994696 a}{\f143\noproof0\insrsid6453732\charrsid15994696 l co-ordination between the EU and }{\f143\noproof0\insrsid3155080\charrsid15994696 Australia }{\f143\noproof0\insrsid6453732\charrsid15994696 .}{\f143\noproof0\insrsid15167894\charrsid15994696 }{\f143\noproof0\insrsid4462543\charrsid15994696 \par }{\f143\noproof0\insrsid13194718\charrsid15994696 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10958809 {\f143\noproof0\insrsid4462543\charrsid15994696 \par }{\f143\ul\noproof0\insrsid4462543\charrsid15994696 Conclusions \par }{\f143\noproof0\insrsid4462543\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13508778 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 29.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid13508778\charrsid15994696 One of the purposes of this paper has been to emphasise the large amount of co-operation which is cu rrently going on between competition agencies in the field of detection and investigation of cartels, which may not be so well known outside the agencies themselves. That co-operation encompasses both the principles for the struggle against cartels, and s pecific cartel investigations, including in particular co-ordination in the organisation of surprise inspections. Within the EU, helped by the fact that we share a }{\f143\noproof0\insrsid1275348\charrsid15994696 common}{ \f143\noproof0\insrsid13508778\charrsid15994696 legal framework, we have pushed our co-operation, through the European Competition Network, to levels which are not }{\f143\noproof0\insrsid1275348\charrsid15994696 paralleled}{ \f143\noproof0\insrsid13508778\charrsid15994696 elsewhere in the world. Outside the EU, }{\f143\noproof0\insrsid3155080\charrsid15994696 we co-operate}{\f143\noproof0\insrsid16332652\charrsid15994696 strongly with those jurisdictions with which we have bilateral agreements, but even the absence of such an agreement is not a barrier to informal co-operation. It is by no means coincidental that a recent increase in rates of }{ \f143\noproof0\insrsid1275348\charrsid15994696 detection and}{\f143\noproof0\insrsid16332652\charrsid15994696 sanctioning of international cartels has gone hand in hand with an increase in international co-}{ \f143\noproof0\insrsid1275348\charrsid15994696 operation}{\f143\noproof0\insrsid16332652\charrsid15994696 between }{\f143\noproof0\insrsid1275348\charrsid15994696 competition}{\f143\noproof0\insrsid16332652\charrsid15994696 agencies.}{ \f143\noproof0\insrsid13508778\charrsid15994696 \par }{\f143\noproof0\insrsid16332652\charrsid15994696 \par }{\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 30.}}{\f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid2498340\charrsid15994696 But it would be wrong}{\f143\noproof0\insrsid16332652\charrsid15994696 to give the }{\f143\noproof0\insrsid1275348\charrsid15994696 impression}{\f143\noproof0\insrsid16332652\charrsid15994696 that we already live in an ideal world, even within the EU. A number of issues remain to be tackled, and }{\f143\noproof0\insrsid5391613\charrsid15994696 three of them in particular should be high}{\f143\noproof0\insrsid1584436\charrsid15994696 lighted}{ \f143\noproof0\insrsid5391613\charrsid15994696 :}{\f143\noproof0\insrsid16332652\charrsid15994696 \par }{\f143\noproof0\insrsid5391613\charrsid15994696 \par {\listtext\pard\plain\f3\lang2057\langfe2057\langnp2057\langfenp2057\insrsid5391613\charrsid15994696 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \qj \fi-360\li1440\ri0\widctlpar \jclisttab\tx1440\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1440\itap0\pararsid5391613 {\f143\noproof0\insrsid5391613\charrsid15994696 The first outstanding issue is that of exchange of confidential information. It i s currently not possible for DG Competition to share confidential information on cartels under investigation with competition agencies outside the EU}{\f143\noproof0\insrsid2255092 and EEA}{\f143\noproof0\insrsid5391613\charrsid15994696 , without the consent of the parties. This is predictably very rarely given. Even the existing }{\f143\noproof0\insrsid1275348\charrsid15994696 bilateral}{\f143\noproof0\insrsid5391613\charrsid15994696 agreements which the EU has with the USA Canada and Japan do not derogate from this principle. This significantly hampers the degree to whi}{\f143\noproof0\insrsid403830\charrsid15994696 ch we can co-operate with non-EU}{ \f143\noproof0\insrsid5391613\charrsid15994696 jurisdictions}{\f143\noproof0\insrsid2255092 ,}{\f143\noproof0\insrsid5391613\charrsid15994696 }{\f143\noproof0\insrsid15673785\charrsid15994696 including }{\f143\noproof0\insrsid2255092 in cases where}{ \f143\noproof0\insrsid5391613\charrsid15994696 surprise inspecti}{\f143\noproof0\insrsid4732274\charrsid15994696 o}{\f143\noproof0\insrsid5391613\charrsid15994696 ns have been }{\f143\noproof0\insrsid1275348\charrsid15994696 carried}{ \f143\noproof0\insrsid5391613\charrsid15994696 out}{\f143\noproof0\insrsid15673785\charrsid15994696 in a co-ordinated way}{\f143\noproof0\insrsid4732274\charrsid15994696 . It is not possible to sa}{\f143\noproof0\insrsid403830\charrsid15994696 y}{ \f143\noproof0\insrsid4732274\charrsid15994696 at this point when or how this issue will be resolved, but it is certainly not one that can be ignored}{\f143\noproof0\insrsid3155080\charrsid15994696 , and indeed }{ \f143\noproof0\insrsid1584436\charrsid15994696 it is being}{\f143\noproof0\insrsid3155080\charrsid15994696 work}{\f143\noproof0\insrsid1584436\charrsid15994696 ed on (including the OECD draft recommended practices referred to above)}{ \f143\noproof0\insrsid4732274\charrsid15994696 .}{\f143\noproof0\insrsid5391613\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4732274 {\f143\noproof0\insrsid4732274\charrsid15994696 \par {\listtext\pard\plain\f3\lang2057\langfe2057\langnp2057\langfenp2057\insrsid403830\charrsid15994696 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \qj \fi-360\li1440\ri0\widctlpar \jclisttab\tx1440\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1440\itap0\pararsid4473257 {\f143\noproof0\insrsid403830\charrsid15994696 Secondly, the issue of }{\f143\noproof0\insrsid15673785\charrsid15994696 co-ord}{ \f143\noproof0\insrsid403830\charrsid15994696 inating leniency programmes so that they complement each other, and do not hamper each other. }{\f143\noproof0\insrsid4473257\charrsid15994696 This is an area where further work}{ \f143\noproof0\insrsid1584436\charrsid15994696 is called for}{\f143\noproof0\insrsid4473257\charrsid15994696 , and which the ICN cartels working group is working on. Not all jurisdictions ha ve leniency programmes (including jurisdictions within the EU), and those leniency programmes which do exist can differ in important respects. By applying for immunity or amnesty in one jurisdiction, a cartel member knows that it will trigger investigatio ns of the cartel in question in the other jurisdictions in which it }{\f143\noproof0\insrsid1584436\charrsid15994696 is }{\f143\noproof0\insrsid4473257\charrsid15994696 active}{\f143\noproof0\insrsid2255092 ; if this }{ \f143\noproof0\insrsid4473257\charrsid15994696 prejudices its position in another jurisdiction, then such applications will be less frequent, and one important weapon in the battle against cartels will be partially di sarmed. On the other hand, streamlined and convergent leniency programmes could lead to a greater number of leniency applications. This is one of the main challenges to competition agencies as concerns their co-operation on the legal principles for their anti-cartel work. \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid403830 {\f143\noproof0\insrsid403830\charrsid15994696 \par {\listtext\pard\plain\f3\lang2057\langfe2057\langnp2057\langfenp2057\insrsid403830\charrsid15994696 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \qj \fi-360\li1440\ri0\widctlpar \jclisttab\tx1440\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin1440\itap0\pararsid403830 {\f143\noproof0\insrsid403830\charrsid15994696 The third issue which needs mentioning is a much more controversial one, that of export cartels, cartels which are based in one jurisdiction but which }{\f143\noproof0\insrsid13194718\charrsid15994696 produce their effects exclusively in}{ \f143\noproof0\insrsid403830\charrsid15994696 another}{\f143\noproof0\insrsid12810228\charrsid15994696 jurisdiction. Often, these are not prohibited by their \'93home\'94 jurisdiction, if the cartel law only prohibits cartels which have an effect within its own territory; but the affected }{\f143\noproof0\insrsid1275348\charrsid15994696 jurisdiction}{\f143\noproof0\insrsid12810228\charrsid15994696 may have difficulty obtaining the evidence concerning the cartel if it is located in a different territory}{\cs16\f143\super\noproof0\insrsid1584436\charrsid15994696 \chftn {\footnote \pard\plain \s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\noproof\langnp2057\langfenp2057 {\cs16\super\insrsid4728395\charrsid2255092 \chftn }{\insrsid4728395\charrsid2255092 So-called \'93 positive comity\'94 (a provision in c ertain international agreements by which one competition authority can request another to carry out an investigation) is not always a solution to this, since if the suspected practice would clearly not be an infringement in the jurisdiction where it is ba sed, the competition authority there may lack the legal means to investigate effectively.}}}{\f143\noproof0\insrsid12810228\charrsid15994696 .}{\f143\noproof0\insrsid1584436\charrsid15994696 }{\f143\noproof0\insrsid12810228\charrsid15994696 It is difficult to know how common such export cartels really are, but it is important to close all gaps and loopholes in the coverage of anti-cartel legislation, so this is a subject to which competition agencies (and indeed legislators) cannot turn a blind eye.}{\f143\noproof0\insrsid4732274\charrsid15994696 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10958809 {\f143\noproof0\insrsid13508778\charrsid15994696 \par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12810228 {\field\flddirty{\*\fldinst {\f143\noproof0\insrsid13462792\charrsid15994696 AUTONUM }}{\fldrslt \hich\af143\dbch\af0\loch\f143 31.}}{ \f143\noproof0\insrsid13462792\charrsid15994696 \tab }{\f143\noproof0\insrsid12810228\charrsid15994696 Despite the existence of such outstanding issues, optimism is in order. The level of co-operation between competition agencies has grown and flourished so much in a relatively short space of time that there is no reason to believe that the }{ \f143\noproof0\insrsid1275348\charrsid15994696 pace}{\f143\noproof0\insrsid12810228\charrsid15994696 of co-operation will not continue in future, with equally positive results.}{\f143\noproof0\insrsid12810228\charrsid5918686 \par }