Leniency Inflation, Cartel Damages and Criminalization

33 Pages Posted: 28 Nov 2022 Last revised: 8 Apr 2022

See all articles by Catarina Marvão

Catarina Marvão

Technological University Dublin; Stockholm School of Economics - Stockholm Institute of Transition Economics (SITE)

Giancarlo Spagnolo

University of Rome Tor Vergata; EIEF; Centre for Economic Policy Research (CEPR); Stockholm School of Economics (SITE)

Date Written: May 18, 2018

Abstract

We revisit the pros and cons of cartel criminalization with focus on its possible introduction in the EU. We document a recent phenomenon that we name EU ``leniency inflation", whereby leniency has been increasingly awarded to many, and sometimes all members of a cartel. We argue that, coupled with the non-disclosure of leniency statements and the insufficient protection of leniency applicants from damage claims introduced by the 2014 Damages Directive, it may have led to a decrease in cartel convictions. Together with evidence on the current level of fines, this points at the need to introduce criminalization. We then explore data on US criminal enforcement (1990-2015) to highlight potential areas of concern for policymakers, if criminal sanctions will be implemented in the EU. Among other things, we find that individuals in cartels where multiple offending firms are involved, are less likely to obtain a prison sentence.

Keywords: antitrust, cartels, deterrence, leniency, damages

undefined

JEL Classification: C72, C73, D43, D81, H11, K14, K20, K21, K42, L13, L44, L51

Suggested Citation

Marvão, Catarina and Spagnolo, Giancarlo, Leniency Inflation, Cartel Damages and Criminalization (May 18, 2018). Available at SSRN: https://ssrn.com/abstract=3180685 or http://dx.doi.org/10.2139/ssrn.3180685

Catarina Marvão (Contact Author)

Technological University Dublin ( email )

Dublin
Ireland

Stockholm School of Economics - Stockholm Institute of Transition Economics (SITE) ( email )

P.O. Box 6501
S-113 83 Stockholm, 11383
Sweden

Giancarlo Spagnolo

University of Rome Tor Vergata ( email )

Faculty of Economics - DEF
Via Columbia 2
Rome, RM 00133
Italy

EIEF ( email )

Via Due Macelli, 73
Rome, 00187
Italy

HOME PAGE: http://WWW.EIEF.IT

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stockholm School of Economics (SITE) ( email )

P.O. Box 6501
Stockholm
Sweden

HOME PAGE: http://https://sites.google.com/site/giancarlospagnoloshomepage/

0 References

    0 Citations

      Do you have a job opening that you would like to promote on SSRN?

      Paper statistics

      Downloads
      398
      Abstract Views
      2,263
      Rank
      154,297
      PlumX Metrics
      Plum Print visual indicator of research metrics
      • Citations
        • Citation Indexes: 6
      • Usage
        • Abstract Views: 2205
        • Downloads: 389
      • Captures
        • Readers: 10
      • Mentions
        • News Mentions: 1
      • Social Media
        • Shares, Likes & Comments: 8
      see details