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Antitrust Alert – October 2020

ALERT - ANTITRUST

The “Guide to the Leniency Program in Telecommunications” is adopted

On October 14, 2020, the Resolution of the Board of Directors No. 143-2020-CD/OSIPTEL was published in the Official Gazette “El Peruano”, through which OSIPTEL adopted the “Guide to the Leniency Program in Telecommunications” (the “Guide“).

The purpose of the Guide is to establish the rules, terms, conditions and restrictions for the optimal implementation of the Leniency Program in the telecommunications sector, pursuant to the provisions of the Act on the Repression of Anti-competitive Conduct, whose Single Ordered Text was adopted by Supreme Decree No. 030-2019-PCM (the “Competition Act“).

In this respect, it must be noted that, in accordance with the Competition Act, the Guide indicates that the Leniency Program constitutes the set of proceedings, phases, conditions and requirements leading to the granting of the benefits of exemption and reduction of sanctions in favor of any individual or legal entity who assumes a duty of cooperation with the competition authority (in the telecommunications sector, OSIPTEL) to disclose information about the existence of a horizontal collusive practice in the market (“Cartel”).

Among the main aspects of the Guide, the following must be highlighted:

– In accordance with the provisions of the Competition Act, three types of leniency are recognized:

(i) Type A leniency, which allows for the exemption of 100% of the corresponding fine, provided that the sanctioning procedure has not been initiated and the authority has no evidence of the existence of the Cartel;

(ii) Type B leniency, which allows for the reduction or exoneration of the corresponding fine, between 50% and 100%, provided that the sanctioning procedure has not been initiated, but the authority has evidence of the existence of the Cartel; and

(iii) Type C leniency, which allows for the reduction of the corresponding fine for the second (30% to 50%), third (20% to 30%) and subsequent applicants (up to 20%), for those cases in which there is a first applicant and/or an administrative sanctioning procedure in process.

– The Leniency Program consists of four phases:

(i)   Phase 1 – Submission of the benefit application;

(ii)  Phase 2 – Submission of cartel evidence

(iii) Phase 3 – Signing of the commitment to grant the benefit; and

(iv) Phase 4 – Granting of Final Benefit.

-The economic agents, their representatives or lawyers may make inquiries about the Leniency Program and/or the order of priority in the event they decide to access the Leniency Program, through the following channels (i) in writing to the parties’ table of OSIPTEL; (ii) by e-mail to clemencia@osiptel.gob.pe; or (iii) by telephone to OSIPTEL’s leniency consultation line.

For further information, please contact Veronica Sattler (vsattler@estudiorodrigo.com) and/or María del Rosario Quiroga (rquiroga@estudiorodrigo.com).