Cartels

A cartel is a formal agreement among firms in an oligopolistic industry.

Cartel members may agree on such matters as prices, total industry output, market shares, allocation of customers, allocation of territories, bid-rigging, establishment of common sales agencies, and the division of profits or combination of these. Cartel in this broad sense is synonymous with “explicit” forms of collusion. Cartels are formed for the mutual benefit of member firms.

The theory of “cooperative” oligopoly provides the basis for analyzing the formation and the economic effects of cartels. Generally speaking, cartels or cartel behaviour attempts to emulate that of monopoly by restricting industry output, raising or fixing prices in order to earn higher profits.

Source: OECD

Cartels, European Union

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Co-authored by Nicola Boyle, Tom Bolster and Boris Bronfentrinker, Hausfeld On 5 June 2014, the Court of Justice of the European Union (ECJ) clarified the full extent of cartel damages that can be recovered in Europe. The ECJ ruled that the civil liability of cartelists also extends to so-called “umbrella pricing”. This term describes pricing…

Cartels

(Mircea and Partners)/ /Leave a comment

The judgement in Commission v EnBW (C-365/12, 27 February 2014) has already awakened a lot of interest. The facts are very simple. EnBW, an energy-distribution company requires access to the cartel file documents related to the prosecution of a number of GIS producers in 2007 and the Commission rejects this application. Following the action for…

Cartels

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Co-authored by Lesley Hannah, Stella Gartagani and Boris Bronfentrinker, Hausfeld On 17 April 2014, a major step was taken in facilitating the pursuit of cartel damages claims across Europe. The European Parliament approved the European Commission’s proposal for a new Directive that will harmonise national rules in order to make it easier for consumers and…

Antitrust, Cartels, Competition, Dominance, United Kingdom

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Private damages litigation is an important complement to public enforcement of UK and EU competition law by the European Commission and national competition authorities (“NCAs”), such as the UK’s newly formed Competition and Markets Authority (“CMA”). Whilst there has been a noticeable increase in private litigation seen in the UK courts, whether ‘follow-on’ or ‘standalone…

Cartels

(Steve Szentesi Law Corporation)/ /Leave a comment

Earlier today I read remarks delivered by European Commission competition head Joaquin Almunia in Brussels on the topic of cartel enforcement (see: Fighting against cartels: A priority for the present and for the future). He discussed, among other things, recent European cartel cases, fines achieved, cartels in innovation and fast moving markets and recent detection…

Cartels

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By Marcel Meinhardt and Frank Bremer, Lenz & Staehelin, Switzerland On November 18, 2013, the Swiss Competition Commission (ComCo) closed proceedings without further action against a Swiss individual with a formerly controlling stake in companies investigated for a possible abuse of a dominant position under the Swiss Cartel Act (CartA). The decision clarifies the applicability…

Antitrust, Cartels, Competition, Dominance, Enforcement, Investigations, Leniency, Market definition, Mergers, Policy

(Davies Ward Phillips & Vineberg LLP, Canada)/ /Leave a comment

In our annual forecast of the year ahead for Canadian competition and foreign investment review law, the Davies Competition Law and Foreign Investment Group outlines the “Top 10” key issues and trends to watch for this year. 1. A Green Light for Class Actions by Indirect Purchasers The Supreme Court of Canada issued an important…

Antitrust, Cartels, Competition, Enforcement, Germany, Investigations

(Heinz & Zagrosek Partner mbB, Germany)/ /Leave a comment

On December 23, 2103, the Federal Cartel Office (“FCO”) published an explanatory note on settlement proceedings in antitrust cases on its website. Since 2007, the FCO has increasingly terminated cases through settlements, so the note came rather late. Unlike the European Commission, the FCO has entered into settlement agreements without a specific regulatory basis and…

Antitrust, Cartels, Germany

(Heinz & Zagrosek Partner mbB, Germany)/ /Leave a comment

The FCO published new fining guidelines on June 25, 2013, which have been applied for several months now. However, the guidelines as well as the recent practice do not provide a lot of guidance. The previous fining guidelines followed a similar methodology as those of the European Commission: the FCO first determined a base amount…

Antitrust, Cartels, Competition, Enforcement, Investigations

(Davies Ward Phillips & Vineberg LLP, Canada)/ /1 Comment

Here is an item that I co-wrote with my colleague Stephane Eljarrat. ************************ When investigating cartel violations in Canada, the Competition Bureau’s tool of choice is the “search and seizure” (the Canadian equivalent of the “dawn raid” in Europe). The Bureau execises its search and seizure powers pursuant to judicially authorized warrants which it must…