Volume 26 (2003) / Issue 3
The author takes the practical example of cartel sanctions to test whether international cooperation in competition policy is likely to be useful and effective. After describing the purpose, types and levels of sanctions for cartels he considers jurisdictional issues that may affect the enforcement of those sanctions. A substantial number of other cartel sanction issues for coordination by competition enforcement authorities are discussed, with the conclusion that such coordination is going to be more difficult and complex than might first appear. He demonstrates that international coordination of competition policy in respect of cartel sanctions could have positive outcomes by clarifying issues and avoiding negative outcomes from a competition point of view. Pre-requisites for an appropriate forum to undertake international competition coordination of cartel sanctions are established. The relative merits of the OECD, UNCTAD, WTO and ICN are considered in the light of the functions an international competition forum is likely to be required to perform. The author urges serious consideration of a mechanism whereby (a) the World Trade Organisation (WTO) would establish competition policy rules and provide a dispute settlement mechanism, while (b) the International Competition Network (ICN) would set standards or benchmarks for measuring compliance with the competition policy rules established by the WTO.
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