Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

When the KFTC considers a violation of the provisions of the MRFTA has been committed by companies, it can conduct the necessary investigation sua sponte. Moreover, any person who deems that a violation of the provisions of the Act has been committed may report the occurrence of such violation to the KFTC (Article 49).
For investigations under Article 49(1)(2), the KFTC shall notify the parties co …

Complaints and investigations

When the KFTC considers a violation of the provisions of the MRFTA has been committed by companies, it can conduct the necessary investigation sua sponte. Moreover, any person who deems that a violation of the provisions of the Act has been committed may report the occurrence of such violation to the KFTC (Article 49).

For investigations under Article 49(1)(2), the KFTC shall notify the parties concerned via written documents (specifying all decisions, if any, such as orders for remedial measures, needed as a result of investigations).

The investigation is conducted on the premises of the suspected infringers by the enforcement team of the KFTC which has the power to seize or request documents, examine witnesses, request answers to interrogatories. In February 2016, the KFTC issued Investigation Procedure Guidelines which strengthen the rights of undertakings and increase transparency in procedures. Under the new rules, to avoid fishing expeditions the investigators commit to inform the undertakings of the purpose and scope of the investigation and of their right to refuse to comply with measures exceeding said scope. This provision was enshrined in the MRFTA itself by the 2020 amendments. In addition, the Guidelines establish a right to legal assistance during the raid and throughout the whole investigation process. Pursuant to the 2020 amendments, investigating officers are now required to draw up reports listing items seized and to return the latter after examination. Also, the undertaking is now allowed to testify or submit opinions during the inspection itself.

The KFTC also amended its Rules on Case Handling procedures to provide that the duration of a cartel investigation may not exceed 13 months. The MRFTA was also amended in 2017 to include a new Article 67(9) which provides for 2 years' imprisonment or a fine of up to KRW 150 million (US$ 128,000) for any person who refuses of fails to comply with an information request. New Article 50-4 also allows the KFTC to impose a penalty for each day of non compliance with an information request of up to 0.3% of the undertaking's average daily turnover. An administrative surcharge of up to KRW 100 million (EUR 72.121 million) for an undertaking and KRW 10 million (EUR 7.212) for natural persons is also incurred pursuant to Article 62-2(1)(6).

After the team's review of the information and documents obtained, the KFTC issues a written complaint to the suspected parties. The parties are then allowed to examine the complaint and the attached documents and to respond to it in writing or at an oral hearing before the full Commission deliberation which comprises nine KFTC commissioners. The full Commission makes a final decision which it notifies the parties.

The 2020 amendments to the MRFTA now expressly state that after the written complaint is served, no more investigations or interviews may be conducted until the formal hearings. In addition, the limitation period for making a decision from the date the infringement ceased is now seven years.

Under the Consent Order Process adopted in November 2011, an undertaking may submit corrective measures to restore the competitive situation and mitigate any harm to consumers. Submissions may only be made between the initiation of an investigation and the hearings held by the KFTC. Approval of the proposed measures by the KFTC after collection of interested parties' submissions leads to an expedited closing of the proceedings, without admission of guilt. However, the Consent Order process is not available to cartel members or for infringements sanctioned by criminal penalties. The 2020 amendments confer on the KFTC a right to monitor the implementation of remedies.

Proceedings before the KFTC

Interim remedies are unavailable during the KFTC proceedings by contrast to court proceedings.

Global Competition Law

1282. Complaints and investigations

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

1282. Complaints and investigations

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise