Simultaneous Dawn Raids

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Global Cartel Enforcement
Practical Information for Companies
Jennifer Dinsdale
Juriste, Nexans HQ
1
SCOPE OF PRESENTATION



Introduction to Global Cartel Enforcement & Multi-jurisdictional
Antitrust Investigations

How it starts

Drivers

Followers
Simultaneous Dawn Raids

Why so effective?

Technical practicalities: What to Do

Legal reaction: Protocol, What not to do
Multi-jurisdictional Enforcement & Document Retention

Legal obligations

Technical Headaches
2
Global Investigation: How it starts
Internal
Investigation
US Jail Time
Cover all
bases
3
Multi-Jurisdictional
Antitrust Enforcement
THE DRIVERS
1.United States Department of Justice
2.European Commission
3. Office of Fair Trade (UK)
4. Bundeskartellemt (Germany)
5. Japanese Free Trade Commission
6. Australia Competition and Consumer Commission
4
Multi-Jurisdictional
Antitrust Enforcement pt. 2
THE FOLLOWERS
1. Canadian Competition Bureau
2. Administrative Council for Competition Defense
(CADE – Brazil)
3. South Korea Fair Trade Commission (but
sometimes a driver)
4. New Zealand Commerce Commission (follows Australia)
5. South Africa Competition Commission
6. Mexican Federal Competition Commission
7. Other National Authorities
5
Multi-Jurisdictional
Antitrust Enforcement Part 3

Best Cartel : International Competition Network
 “ICN will encourage the dissemination of antitrust experience and best
practices, promote the advocacy role of antitrust agencies and seek to
facilitate international cooperation.”
 Meets several times a year

Bi-lateral Agreements allow for vast information sharing
 US-EU Cooperation agreement
 US-Japan MLAT
 EU-Japan

Enforcers talk
 "The Division’s cooperation and coordination with foreign anti-cartel
enforcers has strengthened our ability to investigate and prosecute
international cartel activity.” (Scott Hammond, Acting Assistant
Attorney General, Antitrust Division)

Stagiaire Programs/Exchanges
6
Simultaneous Dawn Raids

Increasingly Sophisticated Means by Competition Authorities to carry out
Dawn Raids
 Training
 Software

Increased Knowledge of what they are looking for
 Leniency or Amnesty Applicants
 Interviews
 Surveillance Tapes

Technical Practicalities and Legal Headaches
7
Simultaneous Dawn Raids:
Technical Practicalties

What to do IN ADVANCE of a dawn raid:
 Have a protocol in place: staff should know what to do and who to call
 Legal should be notified immediately, as well as out-side lawyers (who will
you call? Same law firm? Different local firms?)
 Organise coordinated response by all personnel across the Company
(unified approach should be memorialised in Company procedure)
 Is your IT outsourced? They need to be informed of protocol

What to do DURING a dawn raid
 Assign on-site responsibility to designated personnel
 Establish the location and jurisdiction of the network drive(s) which are to be
searched
 A designated Company IT expert should assist the inspectors with respect to
IT searches/access to electronic documents or data
 Never impede access to IT hardware
 Ensure you can get a copy of everything that inspectors have taken
8
Simultaneous Dawn Raids: Legal
Headaches

Establish a “key team” to manage the investigation – consisting of
lawyers and executives

Manage your outside team of lawyers – have contact group set-up
with phone numbers

Manage IT experts

What to AVOID
 Any Destruction of Documents or Email
 IT manager deletes back-up tape or erases over
 Inform other companies about investigation
 Email from Mr. X to friend at Company Y “We are being raided, Destroy
Everything”
 Obstruct the investigation or be hostile
 Give the investigators documents in the original
9
EXAMPLE OF DOCUMENT
RETENTION OBLIGATIONS
After the Dawn Raid, What comes next? US Subpoena !

PRODUCTION OF DOCUMENTS
 Applies to entire Company
 Related to Investigation (Enormous Scope)
 Electronic or Hard-copy format
 All Original drafts, versions, copies

DOCUMENT RETENTION
 All electronic mail and attachments
 All user-created files
 All databases
 All logs of activity
 All electronic data files
10
DOCUMENT RETENTION
OBLIGATIONS

Things to Consider:
 How to inform the company – is there a procedure in place?
 Where are your servers located? Are they accessible from the US?
 Data protection laws? Do you need to notify that the system is in place?
 COST: back-up tapes become expensive
 Hiring of Outside technical expert to ensure control of retention
 How to define the scope of the retention (factories, SAP, etc)
 Can you limit the obligation to certain businesses
 How to ensure compliance? Certificates? Management communication?
11
- CONCLUSION 
Global Antitrust Enforcement is Increasing

Companies need to be prepared in Advance for Investigations

IT and Technology more important than ever
12
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