Implementing an Effective Leniency Program

March 2013

Difficulties in the Introduction of the Program

• Lack of the necessary planning on account of the political scene

• Cultural issues: immunity programs, as well as cartel prosecution, were not common in Brazil

Mechanisms that Facilitated its Introduction

• Cooperation between criminal and administrative

authorities

• Awareness of the importance of a first successful case by

antitrust agencies

• International cartel leniency cases

• Clear and uncomplicated standards and procedures for

granting markers

• Building a reputation for transparency, confidentiality and

trustworthiness

Key Features of the Brazilian Leniency Program

• Full criminal and administrative immunity for the first

applicant to sign a leniency agreement

• Applicant should provide a detailed history of conduct and all documents and pieces of information related to the offense, as well as full cooperation during the administrative proceedings

• Immunity is conditional and must be confirmed by Cade’s Administrative Tribunal

• Partial immunity and leniency plus are also available

Recent Changes on Brazilian Law

• Cade’s General Superintendence is now responsible for the leniency program

• There’s no more prohibition on signing with the cartel leader

• Law n. 12.529 establishes that criminal immunity applies for cartel crimes and related crimes

Advocacy Initiatives• National campaign on newspapers and magazines

• Distribution of brochures on the leniency program for the biggest companies and on the major Brazilian airports

• Postcards to companies on problematic sectors

• Comic book on fighting cartels

• Participation on seminars, congresses and business events

What’s Next?

• Revision of our leniency program to make it even more transparent regarding the negotiation procedures, the standards of evidence needed to sign a leniency agreement, proof of effects in Brazil and other related issues

• New settlement program to provide more transparency, predictability and alternatives to those interested on cooperating with Cade

Thank you

Mr. Pedro Lucio LyraChief of Staff of the General Superintendent

pedro.lyra@cade.gov.br