A recent court judgment in relation to the Citroën dealership cartel has set out sentencing principles for company directors and managers found to be involved in cartel arrangements. The judgment indicates that a much tougher approach will be taken in the future and that suspending sentences in such cases could be a thing of the past.

Mr. Justice McKechnie noted that the punishment for such crimes could take the form of fines and/or imprisonment. Under the Competition Act 2002, cartel offences can attract prison sentences of up to five years and/or fines of up to €4,000,000 or 10% of a company’s turnover. Notwithstanding the level of fine available, the judge stated there were good reasons for considering the imposition of a custodial sentence:

• Sentencing could act as an effective deterrent, particularly where fines would have to be pitched at a very high level to have the same effect.
• Fines may not always be an adequate incentive to act responsibly.
• Sentencing may act as an incentive to offer greater co-operation in cartel investigations.
• Prison can be a very powerful deterrent, particularly for persons with unblemished pasts and those that are well respected in the community. 
• The imposition of a sentence on such persons can carry a uniquely strong message.

The court considered and rejected many of the traditional pleas put forward as an attempt to avoid or reduce a prison sentence. For example, in this particular case it was pointed out to the judge that the accused had an unblemished reputation and that these acts were out of character. However, the judge stated that the ongoing nature of cartel crimes would tend to suggest otherwise. In addition, the fact that this was a first offence was of limited application, given the level of detailed planning and concealment involved in such a crime.

In this case, a suspended sentence and fines were imposed. The judge pointed out that this was solely on the basis of keeping some alignment with the two other prosecutions that had resulted from the Citroën dealership cartel. However the court indicated that a much stricter approach would be taken in the future.

Mr. Justice McKechnie’s comments will mark the start of a new approach to dealing with cartel crimes.