Screening Devices for Detecting Collusion Screens in Private

Screening Devices for Detecting Collusion Screens in Private Practice Dr. Christina Hummer Vienna, Austria 18 October 2010 1

Areas of application g Audits g Compliance 2

Limits for detection of cartels or their full extent g g Most managers are aware of their illegal conduct Interviews alone might not provide full disclosure - - g fear of repercussions „Code of honour“/“Gentlemen‘s agreement“ don‘t think they will be caught • e. g. infringement has ended, no notes are kept, etc unaware of infringements or of full extent • current infringements carried out by other party • past infringements carried out under predecessor Efforts to avoid any documentary evidence -> no guarantee that such exists at other parties 3

Classical audits g g g g Interviews extensive reviews of records potentially not focused intrusive more difficult to „find the needle in the hay“ very resource intensive very costly („$1 per document“) 4

Advantages of the use of screens during audits g targeted g tailored to the market conditions g supportive tool to prevent employees from hiding facts in the first place g very cost effective g collusion is an economic activity – economic analysis goes beyond statements provided and written records 5

Use of screens during audits g Motive for an audit: - g Launch vs completion - g ongoing investigation in one product area of a company change of management audit during the course of a transaction (seller/buyer) depends on the occasion for the audit structure of the company (e. g. specific antitrust in-house counsel) market involved always in combination with interviews of employees 6

Compliance g g Compliance manuals are not sufficient In-person and online trainings are good, but in order to be effective they should be in combination with - Monitoring (eg. random classical audits vs random screening) internal whistleblower line 7

Thank you very much for your attention! 8

Contact Dr. Christina Hummer LL. M. (NYU) Solicitor (England & Wales) Attorney at Law (New York) Saxinger Chalupsky & Partner Rechtsanwälte Gmb. H Linke Wienzeile 4/II/2 A-1060 Wien Tel. + 43 / 1 / 9050100 Fax + 43 / 1 / 9050100 -100 Rue de Pascale 22 B-1040 Brüssel Tel. +32/2/2307800 Fax +32/2/2307810 c. hummer@scwp. com 9