71 Cover bids, code names and "leaders" So as to not arouse the suspicions of the retailers, the cartel members submitted cover bids on references for which they had agreed that they should not win the call for tender. For example, a text message dated 30 May 2013, sent by one of the companies to its competitor, informed it of a current call for tenders, stating that "it’s a sham consultation and we are responding 10/15% above the usual prices." Furthermore, the working documents used internally relating to the exchanges between the three companies contained references intended to "disguise the terminology used as much as possible, to avoid any risk of the practices being discovered". For example, the terms "Daunat O" and "Daunat S" referred to REDUCED FINES DUE TO the companies LTA and Roland Monterrat respectively, THE THREE LENIENCY in reference, according to Daunat, to the location of APPLICATIONS the headquarters of these companies, to the west (ouest) and south (sud) of Daunat headquarters. A "leader" was also appointed for each client, so as to better organise the exchanges The Autorité handed down a total penalty of between the cartel members. In addition, following telephone €24.5 million, which takes into account the meetings, follow-up tables were often drawn up to group together leniency applications, among other things. the quotes given for each of the competitors and each of the Roland Monterrat was exempt from the fine references for the various calls for tender. for having brought the existence of the car- tel to the attention of the Autorité and coo- perating throughout the procedure. LTA and Daunat, the second and third leniency applicants, were granted fine reduc- tions of 35% and 30% respectively in view of the added value of the information they pro- vided, which made it possible to establish The companies then called each other to dis- and September 2016), without any of the the existence of certain exchanges. Daunat cuss them and, if necessary, adjust their participants deviating or attempting to also benefited from the "leniency plus" offers before responding to the retailers. By deviate from the agreement. Adherence to scheme, which involves granting an additio- way of illustration, an email sent by one of practices was such that no retaliatory action nal exemption to a second-tier applicant if it the three companies to its two competitors was necessary. provides indisputable evidence of additio- on 17 September 2012 includes the following nal facts that have a direct impact on esta- statement, "As we are not present in these blishing the amount of the financial penalties. markets, please let us know fyo consider THE FORMIDABLE This company also received an additional our proposals to be too low." In addition to the EFFECTIVENESS OF THE penalty reduction of approximately €5 million, discussions on the awarding of calls for ten- LENIENCY PROCEDURE due to the fact that its financial difficulties der, Roland Monterrat, LTA and Daunat also were taken into account. referred on several occasions to the negotia- Further proof that the danger often comes tions conducted with the mass-market food from within.. the practices were revealed Decision 21-D-09 of 24 March 2021 retailers concerning changes to prices in the thanks to the leniency procedure, which context of contracts in progress. allows undertakings that have participated in a cartel to disclose its existence to the Autorité and obtain, under certain conditions, THIS PRACTICE REDUCED the benefit of a total or partial exemption COMPETITION FOR NEARLY SIX from financial penalty. In this case, Roland YEARS Monterrat was the first company to apply R for leniency, and avoided any penalties, COMPLIANCE: ADVICE These practices are very serious in nature. benefiting from immunity. The other two TO UNDERTAKINGS By sharing markets and agreeing on prices, companies, LTA and Daunat, also decided to Leniency is a preferred the three main manufacturers of retailer’s apply for leniency after the investigation ser- approach for getting out own-brand industrial sandwiches, which vices of the Autorité had carried out surprise of an agreement account for almost 90% of the market or inspections at their premises. They were Leniency is an effective instrument almost all own-brand sandwich sales, impe- granted reductions in penalties, proportio- for detecting cartels in the face of ded effective competition. This allowed them nate to the relevance of the documents and increasingly sophisticated methods to raise their prices without fear of retalia- information provided for the investigation. of concealing anticompetitive tion from their competitors. The companies therefore benefited from this practices (secret meetings, The secret and relatively sophisticated use of code names, encrypted constructive approach, while at the same messages or even mobile phones arrangement remained remarkably stable time, the Autorité received input into its used purely for the cartel, keeping over time. It continued uninterrupted for investigations. compromising documents at home, almost six years (between September 2010 etc.). It is a powerful factor in destabilising cartels insofar as it introduces a very strong incentive to "repent" to the Autorité. In return, companies may, under certain conditions, be granted a total or partial exemption from financial penalty. 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