- What is the Difference between "Leniency" and "Settlement" in Competition Cases?

The General Authority for Competition encourages establishments to correct their situations through two legal paths (Articles 54-63): Leniency and Settlement.

1. Leniency Program

Designed for initiating establishments that reveal their violations and help uncover other partners in a "Cartel" or monopolistic agreement.

• Condition: Providing new evidence revealing partners or proving the violation.
• Advantage: The initiating establishment may be totally exempted from criminal prosecution, while its evidence is used to punish remaining partners.
• Confidentiality: The Authority and establishment commit to confidentiality of the request and evidence.

2. Settlement Request

A request submitted by a violating establishment (detected or wishing to end the case) to end the dispute amicably in exchange for paying a financial amount.

• Condition: Paying a financial amount approved by the Board + compensating victims (if any).
• Advantage: Closing the case file without referring it to the Adjudication Committee, avoiding harsher penalties or potential naming and shaming.

General Provisions

• Timing: Leniency or Settlement cannot be accepted after a decision to initiate criminal prosecution before the Committee is issued.
• Obligation: The establishment must adhere to all conditions and correct situations.
• Effect: Accepting Leniency/Settlement prevents criminal prosecution, but does not cancel the private right of victims to claim compensation.

Reference: Implementing Regulations of the Competition Law (Articles 54-63) - General Authority for Competition