Plenary I: Overview of Anti-Cartel Enforcement Manual Chapters Chapter 8

1. Plenary I: Overview of Anti-Cartel Enforcement Manual Chapters Chapter 8 Cartel Awareness, Outreach & Compliance: Carlos Mena Labarthe 2012 ICN Cartel WorkshopPanama City, PanamaOctober 2 – 4, 2012

2. Awareness, outreach & compliance • The youngest chapter in the Manual (2012) • Objective: • Generate practical and effective anti-cartel enforcement policies • Approach towards these activities: Cost effective, focused on prevention of breaches. • Targeted to key stakeholders through education. • Compliance and competition culture.

3. Cartel Awareness • General public’s knowledge or perception of anti-cartel laws and possible sanctions. • Education on detrimental effects of cartels, deleterious effects on society, consumers, etc. • Use of publicity, press conferences, electronic and printed media, broadcast, all towards a proper and effective dissemination. • Awareness and information supplied serve as intelligence to generate new investigations.

4. Awareness efforts Identify the most effective channels to deliver the message, receive feedback to better tailor each agency’s strategy… • Expected results: • Receive leads for new investigations. • Achieve effective prevention, detection and deterrence. • Educated stakeholders (public at large & specific groups).

5. Outreach Outreach is a specific type of awareness activity in which the agency takes an active role, such as providing training to specific groups (e.g. procurement agencies or government institutions) • Outreach tools: • Educate key stakeholders; • Build and maintain good relations with them; • Define priority sectors; • Presentations, seminars improve understanding of competition policy e.g. judges; and • Education of companies and employees, include fines and criminal sanctions.

6. Compliance • Compliance refers to the efforts businesses make to prevent infringements of competition laws  • Risk based approach (tailored to the specific risks faced by each business). • The goal is to generate a culture of compliance i.e. actions to generate useful resources for each company. • Useful to avoid financial penalties, criminal conviction, loss of reputation, lawsuits, etcetera. • Part of a corporate governance program. • Requires serious commitment from the highest levels of management. • movie ICN vFINALPANAMA.wmv

7. Challenges ahead • Develop more techniques and materials to disseminate the message by competition agencies in their cartel-related outreach efforts. • Effectively attract allies in targeted key stakeholders, for effective prevention, deterrence and enforcement. • Definition and prioritization of each agency’s goals and strategies, given the limited resources, and each agency’s maturity, particular needs and availability of resources. • Overcoming both the resistance from certain sectors and groups which may have competing commercial interests; and difficulties of outreach to small and medium enterprises. • Fostering compliance culture even as an integrant part of a corporate governance program in corporations.