European Commission Adopts New Leniency Framework

On December 7, 2006, the European Commission ("Commission") adopted a new Leniency Notice that sets out the framework for granting immunity and reducing fines in cartel cases. The new notice replaces the Commission’s 2002 notice. It primarily seeks to clarify the information companies need to provide in order to qualify for immunity from fines or a significant reduction thereof. The new notice moreover introduces a marker system for leniency applicants, and it formalizes a number of measures the Commission has put in place in order to try to protect corporate statements from discovery in civil damage actions.

Under the new notice, the Commission may grant immunity from fines to a company that is the first to submit information and evidence which, in the Commission’s view, will allow it to: