FATIMA KONIEVA: DAWN RAIDS ARE THE MAIN FORM OF OBTAINING EVIDENCE IN CARTEL CASES

Head of Digital Investigation Unit, FAS Anti-Cartel Department discussed cartel–exposing tools and leniency programme at an international workshop in St Petersburg

On 2 October 2018, “Efficient anti-cartel enforcement practices” international workshop opened in St Petersburg. It was organized by FAS and OECD-Hungary Regional Competition Centre.

Head of Digital Investigation Unit, FAS Anti-Cartel Department, Fatima Konieva, discussed FAS best practices.

The speaker presented the main tools for exposing cartels and Russian leniency programme.

Fatima Konieva explained that powers of the competition authority on obtaining evidence are mostly limited to four forms of work: dawn raids, obtaining explanations, document request and leniency.

“Dawn raids are the main form of obtaining evidence in cartel cases”, emphasized the speaker. “In this case we are able to get information that most likely would be deleted or concealed”.

It concerns a set of measures designed to collect and obtain evidence of antimonopoly violations. In case of dawn raids, FAS can get explanations from executives of an inspected entity “without preparation” and other evidence of violating the antimonopoly law by photographing and video recording.

“All FAS raids were effective”, underlined Fatima Konieva. “We always find the necessary information, the necessary totality of evidence sufficient to open antimonopoly cases”.

The speaker pointed out at some direct, indirect and electronic evidence used by FAS specialists, and described the method of screening in detail.

FAS developed and implemented a multi-parameter monitoring system and exposing all tenders exercising with cartel signs. Information analysis enables to expose from 1 to 50 parameters evaluated by the antimonopoly authority in their totality. As a result the process of exposing and proving bid-rigging cartels becomes remote; it takes place at the desk. Also, the share of procurement cartels exposed by pro-active methods was 80-85%.

Fatima Konieva discussed in detail Russian leniency programme.

She said that full relive from liability is possible if four conditions are met: data and documents are sufficient to ascertain the violation event, the competition authority does not have detailed information (documents), relief is possible only for the person who was the first to fulfill all conditions and refused to further participation in the cartel agreement.

The second and third persons, if the same conditions are met and the fact of the violation is ascertained, can be imposed the minimum fine.

“Only in 2017 FAS received 118 applications form companies under the leniency programme”, emphasized Fatima Konieva. “To compare, in 2011 there were only 23 such applications”.

The speaker reported on FAS-drafted amendments to the antimonopoly law with regard to the leniency programme.

“We would like to formalize the programme: specify the application filing procedure, deadlines, forms, etc., directly in the Law “On Protection of Competition”.

Finally, Fatima Konieva pointed out that collaboration with the law enforcement bodies and competition advocacy are the necessary elements of preventing and combating cartels.

“We undertake robust efforts to establish cooperation with the law enforcement bodies. Today there are positive examples how it can actually work. One of the latest FAS cartel decisions is based on criminal case materials shared with us by the investigative bodies so that we can use this information to prove the cartel”, concluded Fatima Konieva.

Following the presentation of the FAS representative, the participants pointed out that often rely on FAS experience in their work and thanked for an opportunity of such training and presented practice.