• The Commission for the Supervision of Business Competition ("KPPU") recently issued Regulation No. 4 of 2010 ("Regulation 4") which contains guidelines and provisions on cartels.
  • Cartels are referred to generally in Article 11 of Law No. 5 of 1999 (the "Anti-Monopoly Law") which prohibits business actors from entering into agreements with their competitors with the intention of influencing prices or marketing goods in a way that would result in monopolistic practices or unfair business competition. Apart from Article 11, the Anti-Monopoly Law does not contain specific references to cartels.
  • Regulation 4 sets out a number of indicators that can be used to support a charge of cartel activity, some of which have been set out below:
    • (i) Inter-relation of ownership between competing companies;
    • (ii) Significant barriers to entry for new businesses in respect of a particular market; and/or
    • (iii) Uniformity of prices for goods or services which in certain circumstances may be an indication that there is a consensus in relation to price fixing among competing companies.
  • Regulation 4 further provides that evidence must be provided to support a charge of cartel activity. Such evidence may take the form of documentary evidence and/or oral statements by relevant persons including present or former employees and customers.
  • If cartel activity is found to have taken place, Regulation 4 provides that sanctions will be applied. The sanctions are consistent with those generally set out in the Anti-Monopoly Law and include a revocation of the relevant agreement, fines, imprisonment and a temporary prohibition from holding office within a particular company.
  • Regulation 4 has been in force since 9 April 2010.