Report: No clear need exists for personal sanctions for cartel involvement

A report based on the Government Programme assesses the need for personal sanctions related to cartels. According to the report, there is no clear need for personal sanctions; instead, competition processes should be accelerated in general. The Ministry of Economic Affairs and Employment will begin an investigation into the matter.

The Government’s aim is to improve the functioning of the market and enhance competition control. One part of this objective is to evaluate the need for and feasibility of personal sanctions for cartel involvement. 

Minister of Employment Matias Marttinen requested Doctor of Laws, Professor of Practice Pekka Timonen to examine different options for personal sanctions for those involved in cartels. At the moment, administrative penalty payments can only be imposed on companies involved in a cartel, i.e. persons making decisions on and implementing cartels are not subject to personal penalties. 

The report assessed three options: a personal penalty payment, an administrative prohibition on pursuing a business, and personal liability for damages. The report concludes that while a personal penalty payment could improve compliance with the prohibition on cartels, there is no clear need for such a payment. It would also make the process more complicated. 

The report proposes the introduction of simpler and quicker competition processes. This could happen, for example, by amending legislation to allow the Finnish Competition and Consumer Authority (FCCA) to make infringement decisions and impose penalty payments. At present, the Market Court imposes penalty payments on the proposal of the FCCA.  

“As part of the efforts to improve the regulation of cartels, we must ensure that cartel enforcement has more impact and that illegal cartels are broken up quickly. According to the report, the most effective solution would be to strengthen the FCCA’s ability to make decisions on competition control. Based on this, the Ministry of Economic Affairs and Employment will begin a further investigation to strengthen cartel enforcement,” says Minister of Employment Matias Marttinen.

Inquiries:
Pekka Timonen, Rapporteur, tel.  +358 50 582 2284
Virve Haapajärvi, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 027
Olli Hyvärinen, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 047 026
Jaakko Aromaa, Special Adviser to the Minister of Employment, tel. +358 295 047 110 (questions to the Minister of Employment)