The Use of Leniency Programme in Detecting Cartels in Malaysia

Open access

Abstract

The cartel is regarded as a desease that inflicts on the open market economy. Whilst its presence is detrimental to the public, the most serious issue is its secrecy, which has posed a major problem to competition authorities all over the world. To address this, many countries including Malaysia have introduced a leniency programme for the detection of cartels by persuading their members to approach the authorities to admit involvement in the cartel activities and assist the authorities to expose other cartel participants. The objective of this paper is to conduct a study on the legal framework of the cartel and Malaysia’s leniency programme. The paper contains a detailed analysis of the Competition Act 2010 (Act 712) (CA 2010), the Guidelines on Leniency Regime (Leniency Guidelines) by the Malaysian Competition Commission (MyCC) and academic research in this area. The findings show that while the leniency programme is available under the Leniency Guidelines, data on leniency applications made to date are not available on the MyCC’s website. In addition, the MyCC’s decisions published on its website revealed that of six cartels that were found to have committed infringement, none had been first detected through the leniency programme. Therefore, the effectiveness of the programme has yet to be proven.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Arbault F. & Peiro F. (2002). The Commission’s new notice on immunity and reduction of fines in cartel cases: building on success. EC Competition Policy Newsletter No 2 June p15.

  • Aubert C. Rey P. & Kovacic W. E. (2006). The impact of leniency and whistle-blowing programs on cartels. International Journal of industrial organization24(6) 1241-1266.

  • Borrell J. R. Jiménez J. L. & Ordóñez-de-Haro J. M. (2015). The leniency programme: obstacles on the way to collude. Journal of Antitrust Enforcement3(1) 149-172.

  • Centella M. L. T. & Suurnakki S. (2007). Comission adopts revised Leniency Notice to reward companies that report hard-core cartels. Competition policy newsletter (1) 5-15.

  • Chen J. & Harrington Jr J. E. (2007). The impact of the corporate leniency program on cartel formation and the cartel price path. In The political economy of antitrust (pp. 59-80). Emerald Group Publishing Limited.

  • Chen Z. & Rey P. (2013). On the design of leniency programs. The Journal of Law and Economics56(4) 917-957.

  • Connor J. M. (2008). Global Price Fixing (2nd edn.). United States; Springer.

  • Dabbah M. M. (2004). EC and UK Competition law: Commentary cases and materials. Cambridge: Cambridge University Press.

  • Directorate General for Competition. (2017 September 4). Retrieved September 15 2017 from http://ec.europa.eu/dgs/competition/.

  • EU Commission. (2016). Leniency. Retrieved from http://ec.europa.eu/competition/cartels/leniency/leniency.html.

  • Frese M. (2014). Sanctions in EU competition law: principles and practice. United Kingdom: Hart Publishing Ltd.

  • Haliza A. Shukor & Nazura Abdul Manap. (2016). Regulating Anti-Competitive Business Conduct via Competition Law in Malaysia. Journal of Management & Muamalah 6(2) 2 15-26.

  • Hoang C. T. Hüschelrath K. Laitenberger U. & Smuda F. (2014). Determinants of self-reporting under the European corporate leniency program. International Review of Law and Economics40 15-23.

  • Jaspers J. D. (2017). Managing cartels: How cartel participants create stability in the absence of law. European Journal on Criminal Policy and Research23(3) 319-335.

  • Jones A. & Sufrin B. E. (2016). EU Competition Law: Text Cases and Materials (6th ed.). Oxford: Oxford University Press.

  • Klimašauskienė D. & Giedraitis V. (2011). Fighting cartels: An application of economic theory and the effects of leniency policies. Ekonomika90.

  • Middleton K. Rodger B. MacCulloch A. & Galloway J. (2009). Cases and materials on UK and EC competition law (2nd ed.). Oxford: Oxford University Press.

  • Miller N. H. (2009). Strategic leniency and cartel enforcement. American Economic Review99(3) 750-68.

  • Monti M. (2000). Fighting cartels why and how. In 3rd Nordic Competition Policy Conference Stockholm (pp. 11-12).

  • MyCC. (2012). Akta Persaingan 2010 Menggalakkan Persaingan Melindungi Anda. Retrieved from http://www.mycc.gov.my/sites/default/files/handbook/Garis-Panduan-Pematuhan-MyCC.pdf.

  • MyCC. (n.d.). Case. Retrieved from http://www.mycc.gov.my/legislation/case.

  • MyCC. (n.d.). Leniency. Retrieved from http://mycc.gov.my/faqs-regarding-the-leniency.

  • MyCC. (n.d.). Roles and Functions. Retrieved from http://www.mycc.gov.my/about-us.

  • Nazlan Ghazali & Rozita Mohd Yusoff. (2012). The Competition Act of Malaysia. International In-house Counsel Journal (5)19 1-7.

  • Oded S. (2013). Leniency and Compliance: towards an effective leniency policy in the Chinese Anti-Monopoly Law. In Faure M. & Zhang X. (Eds.) The Chinese Anti-Monopoly Law (pp.142-164). Cheltenham: Edward Elgar Publishing Limited.

  • Pavlova N. & Shastitko A. (2016). Leniency programs and socially beneficial cooperation: Effects of type I errors. Russian Journal of Economics2(4) 375-401.

  • Rodger B. & Macculloch A. (2015). Competition Law and Policy in the EU and UK. New York: Routledge.

  • Safinaz Mohd Hussein Ahmad Azam Mohd Shariff Nazura Abdul Manap Ramalinggam Rajamanickam & Mazliza Mohamad. (2014). Is fair market competition regulated under syariah law? Mediterranean Journal of Social Sciences 5(23) 152.

  • Shila D. R. & Burgess R. (2016). SMEs and Malaysia’s New Competition Law Experiences to Date. In Schaper M. T. & Cassey Lee (Eds.) Competition Law Regulation and SMEs in the Asia-Pacific: Understanding the Small Business Perspective (pp. 292-308). Singapore: ISEAS Publishing.

  • Stephan A. (2006): An Empirical Assessment of the 1996 Leniency Notice CCP Working Paper.

  • Stephan A. (2008). An empirical assessment of the European leniency notice. Journal of Competition Law and Economics5(3) 537-561.

  • Stucke M. E. (2016). Leniency Whistle-Blowing and the Individual: Should We Create Another Race to the Competition Agency. In Beaton-Wells & Tran C. (Eds.) Anti-Cartel Enforcement in a Contemporary Age: Leniency Religion (pp. 207-230). United Kingdom: Hart Publishing Ltd.

  • The United States Department of Justice. (n.d). Price Fixing Bid Rigging and Market Allocation Schemes. Retrieved from https://www.justice.gov/atr/price-fixing-bid-rigging-and-market-allocation-schemes.

  • Uytsel S.V. & Ying B. (2016). Delayed Leniency Application: The Unfortunate but Predictable Outcome of the Flexible Leniency Policies under the Chinese Antimonopoly Law. In Fenwick M. & Wrbka S (Eds.) Flexibility in Modern Business Law: A Comparative Assessment (pp.99-122). New York: Springer.

  • Van Bael I. (2011). Due process in EU competition proceedings. Netherland: Kluwer Law International.

  • Van Barlingen B. (2003). The European Commission's 2002 Leniency Notice after one year of operation. Competition Policy Newsletter (2) 16-22.

  • Van Uytsel S. & Bi Y. (2016). Delayed Leniency Applications: The Unfortunate But Predictable Outcome of the Flexible Leniency Policies under the Chinese Antimonopoly Law. In Fenwick M. & Wrbka S. (Eds.). Flexibility in Modern Business Law: A Comparative Assessment (pp. 91-122) Japan: Springer.

  • Whelan P. (2007). A Principled Argument for Personal Criminal Sanctions as Punishment under EC Cartel Law’. Competition L Rev4 7.

  • Wils W. (2008). Efficiency and justice in European antitrust enforcement. United States: Hart Publishing.

  • Zanariah Abd Mutalib. (2018 March 31). 80 cartel-related cases probed since 2011: MyCC member. Retrieved from https://www.nst.com.my/news/nation/2018/03/351469/80-cartel-related-cases-probed-2011-mycc-member.

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 67 67 28
PDF Downloads 35 35 10