Abstract:
Cartel agreements represent one of the most serious threats to market competition, often
resulting in inflated prices, restricted output, and reduced innovation. In response, leniency
programs have been adopted globally as strategic enforcement tools to detect and dismantle
cartels by incentivizing self-reporting among conspirators.
This paper critically examines the effectiveness of leniency programs in dismantling cartel
structures through a comparative analysis; focusing on the experiences of the United States of
America, Canada, and other jurisdictions with mature and tested leniency frameworks. Through
a comparative analysis of established jurisdictions such as United States of America, Canada,
South Africa and Kenya, the study assesses how leniency policies are effective in combating
cartel agreements; incentivize whistleblowers and cooperation with competition authorities.
The study then turns to Ethiopia, critically assessing the legal framework and the practices in
underpinning its competition law regime with regard to leniency program. Special focus is given
to the Ethiopian legal framework, assessing its current capacity to implement and benefit from
such programs. By comparing Ethiopia’s legal framework with international best practices,
particularly United States of America, Canada, South Africa and Kenya, the research critically
evaluates the operational efficiency, enforcement mechanism, and limitations of Ethiopia’s
current leniency regime. Through a mixed(doctrinal and empirical) legal research analysis, the
paper uncovers key gaps in the implementation and enforcement of Ethiopia’s leniency
provisions, including issues related to legal framework, the practice, and stakeholder awareness
that hinder the full realization of leniency programs in Ethiopia.
The study concludes by offering legal and informed recommendations to strengthen the
Ethiopian framework, arguing that a well-designed and credibly enforced leniency program is
essential for uncovering covert cartel behavior and promoting competitive market dynamics.