Competition Archives

ICC Brings Antitrust Compliance Advocacy to China and Brazil

Published on September 30, 2014
ICC updates Chinese agencies on its antitrust compliance and advocacy work.
ICC updates Chinese agencies on its antitrust compliance and advocacy work.

With the rapid growth of antitrust legislation around the world in recent years, many businesses struggle to comply with laws that punish anticompetitive behavior. To help companies embed a culture of compliance within their operations, last year the International Chamber of Commerce issued its Antitrust Compliance Toolkit, which provides tools and advice for companies of all sizes seeking to create or strengthen an antitrust compliance program.

In August 2014, ICC met with competition authorities in China and in Brazil to discuss the toolkit and related compliance advocacy. To date, ICC has unveiled the toolkit through workshops in several countries, including the United States.

The ICC Commission on Competition gathers over 300 competition law experts from 40 countries. The commission launched the Task Force on Antitrust Compliance and Advocacy in 2011, an initiative that has developed practical toolkits on antitrust compliance and contributes to deepening the discussion and thought leadership with all stakeholders.

ICC Meets Competition Authorities in China

In China, the ICC Task Force on Compliance and Advocacy met with several Chinese agencies, accompanied by a delegation of ICC corporate members and representatives from ICC China and from the University of International Business and Economics of Beijing. Anne Tubbs, co vice-chair of the task force, said “ICC is delighted by the very positive welcome it received and the level of interest Chinese agencies showed in the Toolkit and related compliance advocacy work.”

Tubbs noted that the Chinese government is aware of the challenges companies face in mitigating compliance risks through internal controls. “A proactive focus on compliance, as a means of preventing anti-competitive conduct, can help embed a strong compliance culture across all markets, to the ultimate benefit of consumers,” she said. “ICC will continue to explore means of contributing to such efforts in China with assistance from local experts and advocates.”

Tubbs noted that the Chinese government is aware of the challenges companies face in mitigating compliance risks through internal controls. “A proactive focus on compliance, as a means of preventing anti-competitive conduct, can help embed a strong compliance culture across all markets, to the ultimate benefit of consumers,” she said. “ICC will continue to explore means of contributing to such efforts in China with assistance from local experts and advocates.”

The Chinese agencies – which included the Anti-Monopoly Bureau of the Ministry of Commerce, the national Development and Reform Commission, and the State Administration for Industry and Commerce – invited ICC to prepare a Chinese version of the Antitrust Compliance Toolkit and to remain in close contact for the future launch of such materials, as well as other initiatives including the development of guidance tailored to SMEs.

ICC Participates in High-Level Seminar on Compliance Law in Brazil

Hosted by the Center of Social and Economic Law Studies and the Brazilian Administrative Council for Economic Defense (CADE), ICC participated in a seminar from August 28-29 in Sao Paulo to address competition law and policy and corporate compliance initiatives. The event brought together legal experts and representatives from the private sector, competition authorities, and national and international organizations.

Both private sector and agency speakers recognized the ICC Antitrust Compliance Toolkit as an invaluable benchmark for corporate compliance initiatives, serving the antitrust community worldwide. Much attention was also given to SMEs, noting that they deserve particular consideration as limited resources make it harder to develop and embed a successful competition culture. Simone Pieri, one of the contributors to the ICC Antitrust Compliance Toolkit, announced at the seminar that ICC will soon be rolling out an SME version of the toolkit.

As for the promotion of a competition culture, it was acknowledged that companies and lawyers have an important role to play. Speakers stressed that competition agencies should also promote competition culture through their decisions. The need to promote the globalization of competition compliance legislation and build international consensus and coherence on how to treat compliance programs garnered considerable attention from participants.

Staff contact: Rachel Spence

More on USCIB’s Competition Committee

USCIB Rolls Out ICC Antitrust Toolkit in the United States

Published on September 9, 2014
(L-R) Anne Riley (Shell), Brent Snyder (U.S. Department of Justice), John Taladay (Baker Botts), Jennifer Patterson (Kaye Scholer LLP)
(L-R) Anne Riley (Shell), Brent Snyder (U.S. Department of Justice), John Taladay (Baker Botts), Jennifer Patterson (Kaye Scholer LLP)

Antitrust laws – which are designed to control anti-competitive practices such as price-fixing and dividing markets – have proliferated rapidly around the world in recent years, reflecting society’s increasing ethical expectations about the governance of business conduct. Managing the growth of these legal compliance requirements is challenging for all businesses without the right tools to foster a compliance culture.

Designed by business for business, the ICC Antitrust Compliance Toolkit provides valuable guidelines for small and medium sized enterprises (SMEs) and larger companies wishing to build or reinforce a robust compliance program.

On September 9, USCIB and the International Chamber of Commerce co-sponsored a program for the official rollout of ICC’s Antitrust Compliance Toolkit. The Compliance Toolkit received acclaim in many jurisdictions and has been unveiled in 8 other countries: Austria, Belgium, Canada, France, Malaysia, Netherlands, Switzerland and the United Kingdom. Hosted by Kaye Scholer in New York City, the U.S. event featured keynote speaker Brent C. Snyder, deputy assistant attorney general for criminal enforcement at the antitrust division of the U.S. Department of Justice.

The following antitrust experts also served as panelists during the event: John M. Taladay, partner at Baker Botts and chair of the USCIB Competition Committee, Anne Riley, group antitrust council at Shell International, Charles Webb, senior director of international antitrust compliance at Wal-Mart, Aimee Immundo, senior counsel of competition law and compliance at General Electric, Scott Hemphill, law professor at Columbia Law School, and Jennifer Patterson, partner at Kaye Scholer LLP and vice chair of the USCIB Competition Committee.

Participants discussed the importance of business executives committing to a solid and credible antitrust compliance program, regardless of the company’s size. Following Snyder’s keynote address, Riley presented the ICC Antitrust Compliance Toolkit. Attendees then participated in a case study exercise designed to assess the anticompetitive risks of a hypothetical company in three different jurisdictions. The event concluded with a panel discussion on corporate compliance programs, with input from USCIB members.

Keynote speaker Brent Snyder (DOJ) explained that the purpose of having an effective compliance program is to be a responsible corporate citizen.
Keynote speaker Brent Snyder (DOJ) explained that the purpose of having an effective compliance program is to be a responsible corporate citizen.

“Effective Compliance Programs Prevent Antitrust Violations”

As the Department of Justice’s top authority responsible for antitrust laws against cartels, Brent Snyder gave keynote remarks about the importance of crafting an effective antitrust compliance program that prevents violations from happening in the first place. He stressed that a business’s senior management must be committed to antitrust by cultivating a culture of compliance within the organization. CEOs must lay the foundation for a corporate culture of compliance in order for such a program to work.

“The best way to stop a crime is to stop it before it happens,” said Snyder. “Effective compliance programs prevent antitrust violations.”

Snyder noted that the consequences for violating antitrust laws are severe, and that businesses should be aware of the liabilities at stake if an employee breaks antitrust laws. He said that businesses need to be proactive about their compliance programs and that they should pay special consideration to how they approach violators.

He concluded by urging businesses not to think about compliance programs as a “stick” or as a punishment. Rather, “the purpose of having an effective compliance program is to be a good and responsible corporate citizen.”

Snyder explained that the consequences of ineffective antitrust compliance are within the company’s power to control. To that end, the ICC Toolkit is a valuable resource.

“They’re very good tools,” Snyder said about the toolkit. “They’re excellent.”

ICC AntitrustICC Antitrust Compliance Toolkit

The ICC Toolkit, presented at the event by Riley, offers useful guidelines for businesses big and small on how to create an antitrust compliance program and how to strengthen an existing program.

“What this is about is behaving ethically and doing business ethically,” she explained.

The toolkit also covers the importance of getting senior management to support the compliance program, and suggests that a company’s antitrust officers consult with finance departments to help identify areas where there is legal risk of antitrust violations.

Riley noted that “compliance know-how” is a must for business executives, and that companies should make clear why it is in their interest to champion and comply with antitrust rules. All businesses need a consistent, ongoing commitment to compliance from both management and employees, she concluded.

The ICC Toolkit is available for download in English and French at the ICC website. It will soon be translated into several other languages as well.

(L-R) Aimee Immundo (General Electric), Scott Hemphill (Columbia Law School), Charles Webb (Wal-Mart)
(L-R) Aimee Immundo (General Electric), Scott Hemphill (Columbia Law School), Charles Webb (Wal-Mart)

Corporate Compliance Programs

Following a case study exercise that asked participants to assess a hypothetical company’s anticompetitive legal risks, the event concluded with a panel discussion about corporate compliance programs. Panelists included Charles Webb, senior director of international antitrust compliance at Wal-Mart, Aimee Immundo, senior counsel of competition law and compliance at General Electric and Scott Hemphill, law professor at Columbia Law School.

Webb explained that large corporations like Wal-Mart are interested in knowing how to implement “a world class antitrust program,” and he used the ICC Toolkit to that end.

Immundo stressed that the human aspect of compliance is hugely important but difficult to quantify. She warned that people have gone to jail for antitrust violations and that it is crucial for businesses to carefully monitor their horizontal relationships so that executives don’t wander into potentially dangerous anticompetitive territory with their peers.

A recurring theme throughout the event was that it is challenging to get business people interested and fired up about antitrust compliance. Hemphill suggested that companies provide vivid examples to employees about the personal risks and consequences of violating antitrust rules. He lauded the ICC Antitrust Toolkit for helping to generate interest in compliance.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

ICC Antitrust Compliance Toolkit Workshop

Published on August 28, 2014

4820_image002Compliance laws have proliferated rapidly around the world in recent years, reflecting society’s increasing ethical expectations about the governance of business conduct. Managing the growth of these legal compliance requirements is challenging for businesses without the right tools to foster a compliance culture.

Compliance has become particularly important in the field of antitrust law. Sanctions for antitrust violations are often substantial, with potentially massive reputational damage to companies resulting from adverse antitrust findings. To date there is no international consensus among antitrust enforcement agencies on how to support businesses in their genuine antitrust compliance efforts.

Therefore, the ICC Antitrust Compliance Toolkit and the September 9 Toolkit Workshop come at a critical time. The International Chamber of Commerce and USCIB seek to foster understanding between business and antitrust agencies through the toolkit and the upcoming program.

ICC Antitrust Compliance Toolkit Workshop
September 9, 2014 – 1:30pm – 4:30pm
Kaye Scholer LLP 425 Park Avenue
New York, NY  10022-3598

To register, please email Rachel Spence at rspence@uscib.org with your name, title and organization.

Many companies already have antitrust compliance programs in place to help protect themselves and their shareholders. In order to support business in these efforts, ICC has developed practical tips, guidance and advice to assist companies in building and reinforcing credible antitrust compliance programs, taking into account both the risks these companies face and the resources available to them.

This global toolkit complements materials produced by antitrust agencies and other sources of guidance by focusing on practical steps companies can take internally to embed a successful compliance culture. The toolkit has been produced by the ICC Task Force on Antitrust Compliance and Advocacy following suggestions from a number of antitrust enforcement agencies.

Organized by the International Chamber of Commerce (ICC) and the U.S. Council for International Business (USCIB), the event will be hosted by Kaye Scholer LLP from 1:30 p.m. to 4:30 p.m. in New York City immediately following the Joint USCIB Competition Committee and ICC Competition Commission Meeting.

Workshop Agenda

1:00 p.m. to 1:30 p.m. – Registration

 

1:30 p.m. to 1:35 p.m. – Introductory remarks

John M. Taladay, Partner, Baker Botts

1:35 p.m. to 2:05 p.m. – Keynote Speaker

Brent C. Snyder, Deputy Assistant Attorney General for Criminal Enforcement, U.S. Department of Justice

2:05 p.m. to 2:30 p.m. – Presentation of the ICC Antitrust Compliance Toolkit

Anne Riley, Group Antitrust Counsel and Associate General Counsel, Shell International Limited

2:30 p.m. to 2:45 p.m. – Coffee Break

 

2:45 p.m. to 3:45 p.m. – Case Study on the Risk Assessment

This session will begin with a presentation of the case study, which will be provided to participants prior to the meeting, and follow with discussion groups that will be facilitated by the organizers.

3:45 p.m. to 4:25 p.m. – Panel discussion on corporate compliance programs

Charles Webb, Senior Director, International Antitrust Compliance, Wal-Mart
Aimee Immundo, Senior Counsel, Competition Law and Compliance, General Electric
Scott Hemphill, Professor of Law at Columbia Law School, Former Antitrust Bureau Chief for the New York Attorney General

4:25 p.m. to 4:30 p.m. – Conclusions

Jennifer B. Patterson, Partner, Kaye Scholer LLP

4:30 p.m. to 5:30 p.m. – Cocktail Hour

Staff contact: Justine Badimon
 
More on USCIB’s Competition Committee

BIAC Presents Business View to OECD Competition Authorities

Published on July 1, 2014

Competition experts from the Business and Industry Advisory Committee to the Organization for Economic Cooperation and Development (OECD) presented business views to the OECD and a number of non-OECD Member governments at the June session of the OECD Competition Committee and its working parties.

Addressing the revision of the 1995 OECD Recommendation of the Council Concerning Co-operation between Member Countries on Competition Investigations and Proceedings, BIAC emphasized continued concerns regarding the protection of confidential information in exchanges related to cross-border merger investigations.

BIAC also addressed Competition in Generic Pharmaceuticals, Airline Competition, competition and Public Private Partnerships (PPP), and competition aspects of the rollout of broadband networks. The OECD Competition Committee will next meet in December 2014. USCIB is BIAC’s American affiliate.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

USCIB Competition Committee Leadership Transition

Published on February 26, 2014

It was the end of an era at the February 20 meeting of USCIB’s Competition Committee in Washington, D.C., as longtime Chair Michael Blechman (Kaye Scholer) and Vice Chair Jim Rill (Baker Botts), stepped down and passed the baton to new Chair John Taladay (Baker Botts) and Vice Chair Jennifer Patterson (Kaye Scholer).

Handing off the reins at USCIB’s Competition Committee (L-R): Jennifer Patterson (Kaye Scholer), John Taladay (Baker Botts), Michael Blechman (Kaye Scholer), Jim Rill (Baker Botts), Rob Mulligan (USCIB)
Handing off the reins at USCIB’s Competition Committee (L-R): Jennifer Patterson (Kaye Scholer), John Taladay (Baker Botts), Michael Blechman (Kaye Scholer), Jim Rill (Baker Botts), Rob Mulligan (USCIB)

Blechman and Rill, who have been esteemed and productive leaders of the committee for 20 years, said it has been a great pleasure to work together. Rob Mulligan, USCIB’s senior vice president for policy and government affairs, marked the leadership transition by recognizing Blechman and Rill’s contributions and welcoming Taladay and Patterson. USCIB looks forward to working with the new Competition Committee leadership and to continuing the committee’s high-quality work.

Taladay is currently the vice chair of the Competition Committee at BIAC, the Business and Industry Advisory Council to the OECD, a lead drafter on consultations and responses to the OECD’s Competition Committee, and a non-governmental advisor to the International Competition Network.

Patterson co-chairs the International Chamber of Commerce’s Task Force on Due Process, and also serves as a non-governmental advisor at the International Competition Network. Taladay and Patterson will work with all members to ensure that USCIB’s Competition Committee remains an active and engaged forum for dialogue, puts forth strong messaging on important antitrust issues and coordinates with USCIB’s partner organizations.

The committee was also honored to host Chairwoman Edith Ramirez of the U.S. Federal Trade Commission for remarks over lunch regarding the global policy direction of the FTC’s antitrust activities and her recent meetings with officials from China’s antitrust agencies.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

At Rio Meetings, USCIB Represents Business Interests in Global Antitrust

Published on May 11, 2012

4322_image002As U.S. companies are increasingly subject to foreign regulators and the practices of non-U.S. investigative bodies, it is imperative to ensure adequate dialogue between the private sector and government antitrust enforcers, both in order to keep the lines of communication open and to ensure that industry is aware of the ever-evolving antitrust regulations to which they may be subjected.

To that end, Charlene Flick, USCIB’s director of intellectual property and competition, took part in three key meetings in Rio de Janeiro in April: the International Competition Network (ICN) annual conference, an International Chamber of Commerce Roundtable on Competition Enforcement and Compliance, and “ICN in Brazil: The Changing World of Competition,” sponsored by the International Bar Association.

Founded in 2001, the International Competition Network is an informal, virtual network that seeks to facilitate cooperation between competition law authorities globally.  The Rio Conference focused on enforcement and compliance in competition law, including South American enforcement priorities and the business response, as well as company strategies to improve antitrust compliance.

USCIB now enjoys non-governmental advisor status in the ICN, which will increase our visibility and will allow more of our members to participate in its projects, regional workshops and annual meeting.

While in Brazil, USCIB’s Flick also met with a number of Brazil-based attorneys to discuss the current state of intellectual property protection in Brazil, and how the Brazilian bar views intellectual property law and policy as it relates to the international community.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee

More on USCIB’s Intellectual Property Committee

ICC Roundtable on Competition Policy Will Focus on Themes Competition Enforcement and Compliance

Published on March 23, 2012
Panelists include senior officials from government agencies, competition experts from the private sector and high-level academics
Panelists include senior officials from government agencies, competition experts from the private sector and high-level academics

The International Chamber of Commerce (ICC), on the occasion of the 11th International Competition Network (ICN) Annual Conference, is hosting its fourth roundtable on competition policy in Rio de Janeiro on April 16, 2012. The central themes for this year’s roundtable conference are “Competition, Enforcement and Compliance.”

“The ICC roundtable is a unique opportunity to participate in a debate with officials of competition agencies from all over the world and business executives on topics that are shaping the current competition system and rules,” said Paul Lugard, acting chair of the ICC Commission on Competition.

“As in past years, I expect that this roundtable will provide a valuable forum for dialogue between the enforcement agencies and business representatives on important competition law issues,” added Michael Blechman, chair of USCIB’s Competition Committee and vice-chair of the ICC Commission on Competition.

Launched in 2009, this half-day high-level forum has previously looked at topics such as the cooperation between business and agencies in competition law enforcement and possible improvements to this system. Best practices in competition law, particularly from the angle of due process requirements, were discussed in 2010. Last year’s theme “Competition and Innovation” examined the interface between competition and innovation policy as a driver for economic growth and the impact of unilateral company conduct on consumer welfare.

This year’s focus on enforcement and compliance includes panels on South American enforcement priorities and business responses to those priorities, as well as company strategies to improve antitrust compliance. Participants are invited to take an interactive part in panel discussions.

This year’s roundtable panelists will include senior officials from government agencies around the world, competition experts from the private sector and high-level academics.

Click here to read more on ICC’s website.

ICC Competition Commission

More on USCIB’s Competition Committee

Silicon Valley General Counsels Learn About Emerging Global Legal Challenges

Published on November 1, 2011
USCIB’s Charlene Flick
USCIB’s Charlene Flick

On October 21, Charlene Flick, director of intellectual property and competition at USCIB, addressed the Silicon Valley Association of General Counsel in Santa Clara, California.  Ms. Flick discussed emerging legal challenges for U.S. companies as they expand internationally, and specifically how USCIB helps American industry navigate an increasingly complex global marketplace.

USCIB recently updated its Legal Issues Overview, which presents a number of key international policy issues with strong legal components as a reference for corporate counsel and other legal professionals.

“The objective of USCIB’s work,” Ms. Flick noted, “is to foster fair and predictable legal and regulatory regimes across borders to enhance seamless transactions across borders.”  Ms. Flick discussed how USCIB capitalizes on its extensive industry network to influence policy at both national and international institutions.  She then offered a selection of legal challenges that she confronts regularly in her work at USCIB, ranging from questions of jurisdiction and extraterritoriality to the adequacy of a country’s intellectual property regime and whether or not the U.S. notion of due process is respected in foreign jurisdictions in the course of a foreign enforcement action.

“Of particular interest to the general counsels was the realization that legal privilege as U.S. lawyers understand it – that communications between corporate executives and in-house lawyers are privileged and not discoverable — does not apply in all foreign jurisdictions,” Ms. Flick observed.  “The European Union, for example, does not accept this notion of legal privilege, and it is important for American companies to understand that communications internally across borders may be subject to different legal norms in the course of a foreign investigation, and how best to deal with this reality.”

Ms. Flick emphasized that advocacy should not be limited to the legislative bodies, but that influencing policy objectives should be approached on the executive and judicial fronts, as well.  She noted that as the markets globalize, policymakers will be forced to harmonize their own regulatory landscape with that of other countries to benefit their own economies.  “U.S. industry is global industry,” Ms. Flick concluded, “and it should insist upon being at the table where regulations and policies are conceived that will dictate global business.”   This, of course, is where USCIB really provides value to its members.

Staff contact: Helen Medina

USCIB Legal Issues Overview

More on USCIB’s Intellectual Property Committee

More on USCIB’s Competition Committee

Meetings in New York Spotlight International Competition Network

Published on October 6, 2006
L-R: Paul Lugard (Philips), vice chair of the ICC Competition Commission; Daphne Yong-d'Hervé (ICC); Charlene Flick (USCIB); David Lewis, chair of South Africa’s competition tribunal; Michael Blechman (Kaye Scholer), chair of USCIB’s Competition Committee; and Ferdinand Hermanns (Hermanns & Brück), chair of the ICC Competition Commission.
L-R: Paul Lugard (Philips), vice chair of the ICC Competition Commission; Daphne Yong-d’Hervé (ICC); Charlene Flick (USCIB); David Lewis, chair of South Africa’s competition tribunal; Michael Blechman (Kaye Scholer), chair of USCIB’s Competition Committee; and Ferdinand Hermanns (Hermanns & Brück), chair of the ICC Competition Commission.

Last month in New York, the USCIB Competition Committee and the International Chamber of Commerce‘s Competition Commission held meetings that highlighted the emerging role played by the International Competition Network (ICN), which links antitrust enforcement authorities from both developed and developing countries.

David Lewis, chair of South Africa’s competition tribunal and vice chair of the ICN Steering Group, spoke at the ICC meeting, which was well attended by companies and law firms from around the world and across a variety of industries. His remarks underscored the global movement towards convergence in the area of competition law and how the work of the ICN has contributed to the harmonization of competition laws across borders.

Through ICN, government institutions come together to enhance convergence and cooperation so as to promote effective and efficient antitrust enforcement worldwide. The work of ICC’s Competition Commission, as well as USCIB’s Competition Committee, regularly informs the dialogue at the ICN. In the past, ICC has offered comments on the ICN Merger Remedies Review Project as well as input regarding global harmonization efforts in antitrust enforcement generally. ICC as well as individual member companies continue to work closely with ICN and the Competition Commission is currently considering proposals to further engage in upcoming ICN activities in the months to come.

Other agenda items discussed at the USCIB and ICC meetings included the U.S. Department of Justice/Federal Trade Commission ongoing hearings on single-firm conduct, a discussion of the European Commission’s application of Article 82 of the Treaty of Rome to exclusionary abuses, and a briefing concerning China’s pending antimonopoly law.

Staff contact: Justine Badimon

More on USCIB’s Competition Committee