The Commission to Promote Competition (COPROCOM) and the Telecommunications Superintendency (SUTEL) have announced the Guide to the Program of Exoneration and Reduction of Administrative Sanctions detailing the criteria and guidelines that grant benefits to violators who cooperate with the investigation of anti-competitive practices.
The Administrative Penalties Reduction and Exoneration Program, known as the clemency program, or compensated accusation, provides incentives to participants engaged in anti-competitive wrongdoing to disclose such misconduct, present evidence, and cooperate with the investigation while keeping their identity confidential.
These benefits will apply to cartels whose agreements between competitors to set prices, limit production, divide markets or customers, share public tenders, or exchange information to prevent competition are subject to fines of up to 10% of the offender’s sales, as well as disqualification from participating in contracts with the Public Administration for up to 10 years.
The program offers incentives to the first four violators that cooperate. The first company to provide truthful information on anti-competitive violations may be exempt from monetary or other penalties. The second, third and fourth to provide new and relevant data for investigation will receive exemptions of 50%, 30%, and 20%, respectively.
The Administrative Penalties Reduction and Exoneration Program Guide seeks to promote transparency and legal certainty in program implementation and includes the steps this process takes and the criteria that authorities will follow in granting these benefits.