EC launches new anonymous cartel whistleblowing tool

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Sharecast News | 16 Mar, 2017

A new tool, intended to make it easier for people to alert the European Commission about secret cartels and other antitrust violations while maintaining their anonymity, was launched by the on Thursday.

The individuals could now help anonymously in what the EC called “the fight” against cartels and other anti-competitive practices.

It said those practices included agreeing on prices or procurement bids, keeping products off the market or unfairly excluding rivals, which could cause “immense damage” to Europe's economy. They could deny customers access to a wider choice of goods and services at reasonable prices, stifle innovation and put companies out of business, the EC explained.

“If people are concerned by business practices that they think are wrong, they can help put things right,” said commissioner in charge of competition policy Margrethe Vestager.

“Inside knowledge can be a powerful tool to help the commission uncover cartels and other anti-competitive practices.

“With our new tool it is possible to provide information, while maintaining anonymity.”

Information could contribute to the success of our investigations quickly and more efficiently to the benefit of consumers and the EU's economy as a whole, Vestager said.

The EC said the new tool protected whistleblower anonymity through a specifically-designed encrypted messaging system that would allow two-way communications.

It said the service was operated by a specialised external service provider that acted as an intermediary, which relayed only the content of received messages without forwarding any metadata that could be used to identify the individual providing the information.

In particular, the new tool - as well as allowing individuals to provide information - gives them the option of asking for the commission to reply to their messages.

It also allows the commission to seek clarifications and details, and aimed to increase the likelihood that the information received will be sufficiently precise and reliable to enable the commission to follow up the leads with an investigation.

“Until now, most cartels have been detected through the commission's leniency programme, which allows businesses to report their own involvement in a cartel in exchange for a reduction of the fine imposed on them,” Vestager added.

“The commission's new tool gives an opportunity also to individuals who have knowledge of the existence or functioning of a cartel or other types of antitrust violations to help end such practices.”

Vestager explained that the new system increased the likelihood of detection and prosecution and stood to further deter businesses from entering or remaining in cartels or carrying out other types of illegal anti-competitive behaviour.

“It therefore complements and reinforces the effectiveness of the Commission's leniency programme.”

Individuals that were willing to reveal their identity could still contact the EC's competition department directly through a dedicated phone number and email address.

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