The Finnish Ministry of Economic Affairs and Employment has launched a study to evaluate the effectiveness and relevance of the Finnish sanction regime for cartel offences. The assessment aligns with the government’s objective of determining whether individual liability should complement the existing system of corporate administrative penalties.

Current sanctions only target companies

Under the current framework, only companies involved in cartel activities can face administrative fines. In Finland, companies found to have participated in a cartel may be fined up to 10% of their annual turnover. Individuals who participate in, or orchestrate, cartels cannot be sanctioned under the current competition act or the criminal code. In addition, the current legislation on business bans does not seem to be applicable as such to cartel offences. 

Finland also operates a leniency programme, under which a company that voluntarily reports a cartel may receive partial or full immunity from fines, with complete exemption reserved for the first applicant. 

Renewed focus on individual accountability

Discussions on expanding cartel-related sanctions were held during the previous decade as well. In 2013–2014, Finland considered introducing criminal liability for individuals involved in cartel activities. While such measures were acknowledged as potentially justified, the authorities expressed concerns that criminal sanctions could undermine the effectiveness of the leniency programme. Consequently, the proposal was not adopted.

The issue has now been revisited. The new study will assess the effectiveness of the current cartel sanctions in Finland and explore the feasibility of personal sanctions such as criminal liability and business bans. The study will also consider changes to the sanctioning process framework, specifically the shift from criminal to administrative procedures for individual sanctions. Should individual liability be introduced, it would represent a significant shift from a regime focused solely on corporate penalties to one where corporate leadership and key employees may also be held directly accountable for anticompetitive conduct.

For more information, please contact Katia Duncker, Petteri Metsä-Tokila or Maria Karpathakis.

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