Mar 28, 2013
CPI Cartel Column edited by Rosa Abrantes-Metz (NYU Stern School of Business)
Introduction by Rosa Abrantes-Metz
Welcome to the March issue of our cartel column “From Collusion to Competition.” Our two excellent articles come to us from OECD.
The first article, by Hilary Jennings, focuses on the co-operation between competition authorities in different jurisdictions, key to successful enforcement especially given the globalization of business and the consequent rise in the number of uncovered cartels with international scope. In particular, the article describes in detail the impact and the challenges of international co-operation for developing countries, and concludes that international co-operation is held back by challenges that require the attention of developed and developing jurisdictions in different ways. Given the limits that continue to beleaguer effective co-operation between cartel enforcers in OECD Member countries, the additional challenge is to establish the conditions, incentives and tools that will bring the newer and less experienced authorities in developing countries into the international enforcers’ network.
International Co-operation in Cartel Investigations – The Additional Challenges Faced by Developing Countries by Hilary Jennings (Head of Global Relations, OECD Competition Division)
In the second article, Antonio Capobianco discusses market transparency with a focus on unilateral information disclosures, as well as the challenges in determining whether these may be illegal. Unilateral announcements include any communications made by firms to the market (e.g. via press releases or other media communications) to inform the market about strategies, products and developments of the company. Since a unilateral disclosure is not an exchange of information in any well-founded sense but a mere one-way communication, it presents a unique enforcement question because the disclosures are not “agreements” themselves and, thus, must be solely analyzed based on their potential to facilitate tacit concerted activity. It is recommended for enforcers to provide guidelines and safe harbors which would take into account the modern demand on firms to provide information to the public and investors, as well as the specific conditions of each industry, allowing companies to steer clear of infringing competition laws.
Excellent and very topical reading, hope you enjoy!
Rosa M. Abrantes-Metz