The Commission's Fining Policz in Competition Cases

Vol.4,No.2(1996)

Abstract
The Commission has power under Articles 15 and 16 of Regulation 17/62 to fine firms which have been guilty of offences under Articles 85 or 86 of the EEC Treaty. An individual firm may be fined as much as 1.000.000 ECU or 10% of its turnover in all products, worldwide, in the preceding year, whichever is the greate.

In recent years the Commission has been imposing much heavier fines for obvious infringements of the competition rules such as dividing up the common market and price fixing.

Many factors influence the Commission when deciding how large a fine to impose. These include the length and gravity of the infringement, the behaviour of the parties, the product market, profits they derive from the unlawful behaviour. Various issues may be relevant in mitigation, including the willingness with wich the parties agreed with the Commission to terminate the behaviour to which it objected.

Under Article 172 of the EEC Treaty, the ECJ has unlimited jurisdiction to hear appeals against fining decisions. Payment of fines may be enforced in member States in the same way as domestic judgments.

It is submitted that the Commission's fining policy needs to become more transparent. Senior Commission official suggested that the Commission should take inspiration from the U.S. experience and issue sentencing guidelines containing a transparent set of minimum tariffs for fines.


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