Regulation for Implementing Leniency Program Now Approved

Resolution 98/2024 was published in the Official Gazette on May 28, 2024, following a public consultation process initiated in March 2024. Through this resolution, the Secretariat of Industry and Commerce under the Ministry of Economy approved the Regulation for Implementing the Leniency Program established in Chapter VIII of Competition Law 27442 (LDC) and its regulatory Decree 480/2018.

The Regulation outlines the stages, procedures, and requirements that must be met by individuals or legal entities that have engaged or are engaging in any of the practices listed in article 2 of the LDC (commonly known as “hardcore cartels”). These include agreements to fix prices, restrict supply, allocate markets, or coordinate bids in tenders, competitions, or auctions. These entities may apply for the Leniency Program.

The Leniency Program allows applicants to obtain immunity or a reduction of penalties, which can include fines of up to 30% of the infringing companies' turnover, provided they cooperate continuously with the Argentine Commission for the Defense of Competition (CNDC) by providing information and evidence to establish the existence and operation of the cartel. This framework incentivizes self-reporting by offering full immunity to the first applicant who provides conclusive evidence and applies for the Program before being charged.

The Regulation also encourages subsequent applicants—individuals or legal entities—to contribute new evidence. However, in such cases, only penalty reductions, not full immunity, apply.

The Regulation also establishes the creation of the Leniency Unit (UC), which will be responsible for receiving and processing leniency applications during their initial stages. The Regulation establishes that the UC must be formed within the CNDC, using its existing resources. Members of the UC must operate independently from the Argentine Directorate of Anticompetitive Practices and of the Argentine Directorate of Economic Concentrations, and must not serve in other leadership roles within the CNDC. Furthermore, at least one member of the UC must hold the rank of National Director and will be responsible for resolving and managing matters related to the implementation and enforcement of the Regulation.

In this context, through Directive 57/2024, the CNDC appointed the personnel assigned to the UC. These agents are bound by strict confidentiality obligations, requiring them to maintain the highest level of discretion regarding any data and information accessed in the course of their duties. They may only use such information for its designated purpose, are prohibited from disclosing or publicizing it, and must adopt all necessary security measures to ensure its confidentiality.