The PSOE has put forward a legislative change to broaden penalties under the competition law. The amendment proposes higher fines for companies that participate in cartels, with a ceiling of 50 million euros and a floor of one million euros. According to a registered amendment that Europa Press has reviewed, the Financial Client Defense Officer of the PSOE argues that fines should be tougher for both corporations and their senior managers within the framework of competition law.
Under the proposal, violations of the law could lead to fines of up to 50 million euros in serious cases and up to 50 million euros for what authorities classify as very serious offenses when a cartel is involved. Currently, penalties range from 100,000 to 500,000 euros for light offenses; for serious offenses they run between 500,001 euros and 10 million, and very serious offenses exceed 10 million.
About worldwide billing
The amendment also calls for penalties to be calculated on the company’s worldwide turnover whenever possible, rather than on a national or local basis as is common today. In practical terms, fines would be set at a percentage of global turnover: 1% of the worldwide turnover for the cartel participants, up to a maximum of 5% for some offenses and up to 10% for others. In many cases this approach yields a higher amount than the fixed fines proposed by the PSOE, particularly for very serious offenses. For example, a company with a worldwide turnover of 1,000 million euros could face fines ranging from one million to 100 million euros under this system.
Additionally, the PSOE amendment would raise the individual fine for each director of the offending company from 60,000 euros to 400,000 euros. The Socialist Group contends that senior members of governing bodies who fail to attend meetings, who vote in favor of or shield decisions that allegedly violate the law, would be subject to this higher penalty. In some circumstances, directors who abstain from accountability may be exempt from these fines, depending on the specifics of the case and the voting outcomes.