POL UOK Anti-Competitive Penalties
On Apr. 2, POL UOK clarified penalties for anti-competitive practices.
- POL UOK clarified rules for imposing penalties for competition-restricting practices.
- Follows Apr. 2020, clarifications published regarding fines for executives; see #83457.
- Objectives of Guidance
- Document to give detailed guidance about how penalties for violations are calculated.
- The Antimonopoly Act specifies maximum fines and the general rules for determining fines, but new document seeks to increase transparency explaining the methodology.
- Factors Behind Penalty Decision
- The nature of the violation will be taken into account: its gravity, effects, and scale.
- Most severe sanctions for collusion between competitors to elimination competition.
- Other important factors include market structure, barriers to entry, effects of violation on the market, and importance of product for vulnerable customers and the economy.
- Fine amount will also depend on duration of violation, ensuring it is proportionate.
- Initial fine may increase or decrease by up to 50%, for example, due to cooperation.
- Aggravating and extraordinary circumstances may also be taken into consideration.
- More severe penalties can be avoided due to cooperation via the leniency programme.
||B/D; Bank; Exch; HF; IA; Ins
||Gd, PR 4/2/2021; PR 8/4/2020
||C-Suite; Financial; Legal; Market Conduct; Reporting; Treasury
||Banking; Equity; Insurance; Securities
|Reg. Last Update
Last substantive update on 04/05/2021