Following the framework laid out in the broader Competition Regulation, the new Regulation sets out the rules under which companies may benefit from leniency.

The leniency program allows companies involved in competition law infringements to report or provide evidence of those infringements in exchange for a reduction of the fine that would otherwise be imposed.

In addition to setting out the eligibility requirements and the applicable fine reduction rates, the Regulation also safeguards the confidentiality of leniency applications.

A fine reduction of up to 70% may be granted to the first company to come forward with information and evidence of the infringement.

The new leniency regime does not go as far as those in other jurisdictions — including Portugal and South Africa — which, for certain types of infringement such as cartels, grant full immunity to the first applicant. Nevertheless, the regime is expected to become a relevant enforcement tool in detecting and investigating practices that restrict competition.

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