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Competition Act and to adopt the system brought by the Regulation
Project on Fines.
• The turnover to be taken into consideration in calculating the
total fine is specified as the revenue “
… generated at the end of
the fiscal year preceding the final decision, or if that cannot be
calculated, by the end of the fiscal year closest to the date of the
final decision …
” under the Competition Act, the Regulation on
Fines and the Regulation Project on Fines. Nevertheless,
European Union competition law expressly states that the
turnover to be taken into consideration is the turnover of the
undertaking’s last business year during which the infringement
took place. Thus, similar to the Regulation on Fines, the
Regulation Project on Fines also contrasts with European Union
competition law in this respect.
The consequence of the above-stated provision in the Regulation
of Fines, maintained in the Regulation Project on Fines is
unfair. The turnover of undertakings after they have committed
a competition violation may increase without any relation to
such violation. This situation may result in heavy fines imposed
on undertakings.
In light of the foregoing, it would be appropriate to amend such
provision such that the turnover of an undertaking’s last busi-
ness year during which the infringement took place will be
taken into account.
• The Regulation on Fines foresees the increased amount of fines
by half in the event the violation of competition continues for a
period of one to five years, and the doubling of the amount of
the fine if the violation of competition exceeds five years.
Contrarily, European Union competition law foresees a fine
imposed based on the number of years the violation of compe-
tition continues and therefore relates the duration of the viola-
tion with the amount of the fine by multiplying the fine by the
number of infringing years. The system foreseen by the
Regulation on Fines is clearly not in compliance with European
Union competition law. Moreover, this system does not comply
with the relative equality principle either, since the time periods
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NEWSLETTER 2014