An extract from The Cartels and Leniency Review, 10th Edition

Leniency programmes

The ICL does not currently regulate leniency. However, it has been under a process of amendment for several years and the newly elected government and parliament may use the existing draft amendment, prepared and discussed by the previous government and parliament, which introduces a high-level provision on leniency whereby the KPPU may fully exonerate or reduce the sanction for an undertaking that confesses or reports any activity that allegedly violates the ICL. As yet, it is unclear how the leniency programme will be designed; for example, the nature of the mechanism itself and the benefits for applicants.

Notably, however, the implementing regulation for the Omnibus Law, Government Regulation No. 44 of 2021 on the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition (Regulation No. 44), sets out the following extenuating factors to be considered when determining the amount of applicable fines: (1) efforts by the business entity to comply with the law (e.g., by establishing a code of ethics, training or other similar activities); (2) voluntary termination of the violating conduct; (3) whether the business entity engaged in the violating conduct or similar conduct in the previous eight years; (4) whether there was an intentional basis for the violating conduct; (5) whether the business entity initiated the violation; and (6) the impact of the violation.