Exporting U.S. Competition Policy: Global Antitrust Enforcement. The Effect of U.S. Prosecutions of International Cartels on Worldwide Antitrust Enforcement.

During the past decade , the Antitrust Division of the U.S. Department of Justice (the "Division") has obtained billions of dollars in fines in criminal antitrust cases, including several fines exceeding $100 million. In 1999 alone, U.S. criminal antitrust prosecutions yielded $1.1 billion in fines. More than 90 percent of these fines were paid by foreign-based firms convicted of participating in international cartels.

The Divisions high-profile prosecutions of international cartels created awareness among law enforcement authorities worldwide of the effective use of antitrust laws to identify and destroy cartel activity. Several foreign countries , including the United Kingdom, Canada, Brazil, Sweden, the Czech Republic, Switzerland and Denmark, adopted laws designed to prohibit and punish hard- core cartel activity. In addition, the Antitrust Division entered into antitrust cooperation agreements with enforcement agencies in several countries, including Australia, Germany, Canada, the European Union, Israel, Japan, Brazil and Mexico, to facilitate investigation and prosecution of international cartels. These agreements provide for exchange of evidence and assistance with antitrust investigative efforts. Several foreign governments amended their extradition treaties with the United States to include criminal antitrust violations.

Only ten years ago, the prospect that basic principles of U.S. antitrust law would be embraced so broadly and that worldwide cooperation in investigating and prosecuting cartel activity would occur so quickly seemed remote. These developments demonstrate that many foreign governments have recognized that business activities that they once tolerated as "business as usual" burdened their economies and inflicted serious economic harm on their citizens .

This accelerating cooperation among international antitrust enforcement authorities has tremendous significance to firms and individuals who conduct business in international markets. Firms must educate and train their employees about compliance with antitrust laws of all countries and jurisdictions in which they conduct business. Employees must understand the increased risk of detection of antitrust violations and the escalating consequences of multiple criminal prosecutions, including huge fines and enormous damage judgments for firms, and substantial prison terms for individuals.