Leniency for Violations of Competition Law: The First Decision by the AMCU

As of early 2024, a new leniency procedure for violations of competition law, approved by the Antimonopoly Committee of Ukraine (AMCU), has come into force. This procedure introduced changes to a framework that had existed in Ukraine for many years but was rarely utilized in practice. The updated rules provide full immunity for the first applicant and the possibility of reduced fines for other participants in anticompetitive concerted practices.

On December 12, 2024, the AMCU issued its first decisions granting leniency to businesses in cases involving the distortion of procurement results for construction works. In these cases, the applicants were the first to report their involvement in violations, provided critically important evidence, ceased their participation in unlawful activities, and actively cooperated with the regulator, fully complying with legal requirements.

These examples demonstrate that the new leniency procedure is effective. Moreover, the rules incentivize other market participants to approach the AMCU by offering fine reductions: up to 50% for the second applicant, up to 30% for the third, and up to 20% for all subsequent applicants.

The implementation of the updated procedure promotes market transparency, prevents competition distortions, and enhances the interaction between businesses and regulatory authorities.