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

Abuse of dominance, Cartels, Commitments, Competition law, India, Leniency, Merger control, Settlement

(Lakshmikumaran and Sridharan)/ /Leave a comment

The Competition (Amendment) Bill (‘Bill’) was first published for public consultation in February 2020 and it is only on 5 August 2022 that it has finally been tabled before the Indian Parliament. The Bill is a concerted effort to harmonize competition law with the evolving realities of businesses today. The Bill proposes to amend both…

Cartels, Class action, Collective Redress, Damages, Germany, Private actions, Private enforcement

(Spieker & Jaeger)/ /1 Comment

The collective private antitrust cases in the so-called timber cartel keep many German courts busy. At the beginning of the year, the Stuttgart Regional Court rejected any claims for cartel damages in a rather blunt manner [Link]. Now, the Regional Court of Dortmund has heard the case. As Dortmund is located in Germany’s Westfalia region,…

Australia, Cartels, Criminal enforcement, Criminal sanctions, Disclosure, Leniency

, (K&L Gates)/ /Leave a comment

Legal professional privilege (LPP) has long been recognised as a powerful, though controversial protection. As the Australian High Court once declared, it is “a practical guarantee of fundamental constitutional or human rights”.[1] Yet, despite its well-established jurisprudential position, its utilisation to protect internal cartel investigation records of criminal cartel immunity applicants (IA) from being disclosed…

Abuse of dominance, Canada, Cartels, Competition law, Merger control

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

In February 2022, Canada’s Minister of Innovation, Science and Economic Development announced that the Canadian government was evaluating ways to improve the operation of Canada’s Competition Act (Act). The Minister said that changes would be made in multiple stages, with some initial amendments to be proposed in the following months that would have “an immediate…

Anticompetitive agreements, Cartels, Dawn raids, European Commission, European Union, Labour market, No-poach-agreement

, , , , , , (White & Case) and (White & Case, Belgium)/ /Leave a comment

In a speech on 22 October 2021, EU Competition Commissioner Margrethe Vestager revealed that the European Commission was planning a series of dawn raids for the months to come. She highlighted that the European Commission is not just looking to investigate traditional cartels, like price-fixing agreements, but also other types of anti-competitive conduct – such…

Anticompetitive agreements, Cartels, Evidence, Russia

(Elbert, Nazaretsky, Rakov & Co)/ /Leave a comment

On 9th November 2021, the Commercial Court of Moscow will decide an antitrust case between Russian insurance companies (PJSC Rosgosstrakh and LLC Capital Insurance of Life) and the Federal Antimonopoly Services (FAS). The FAS had previously declared an agreement between the two insurance companies invalid. The case concerns the blurring lines between cartels and other agreements in Russian antitrust law. Particularly the standard of proof concerning “other agreements restricting competition” needs to be…

Cartels, Collusion, Green Deal, HBER, Horizontal, Leniency, Settlement, Sustainability, Technological Development

(University of Vienna, Austria) and (General Court)/ /3 Comments

On 8 July 2021, the Commission found that Daimler, BMW and the Volkswagen Group (Volkswagen, Audi and Porsche) violated competition law by colluding on technical development in the area of emission cleaning for new passenger diesel cars, fining the latter two a total of €875 million. The current hype regarding competition law and sustainability comes…

Cartels, Ukraine

(Arzinger) and (E+H Attorneys-at-Law)/ /Leave a comment

In October 2019, Ukrainian news feeds ‘exploded’ as the Antimonopoly Committee of Ukraine (‘AMC‘, ‘Committee‘) imposed a record-breaking fine of a total of about €240 million for a long-lasting cigarette cartel (‘AMC Decision‘) (‘Tobacco Case‘). The respondents in the Tobacco Case are four large cigarette manufacturers – British American Tobacco, Philip Morris, Japan Tobacco, Imperial…

Anticompetitive agreements, Cartels, Competition law, European Union, Sport

(Universität Düsseldorf)/ /3 Comments

The Super League (SL) might have had the lifespan of a fly, the legal questions it raised will linger on. These legal issues are of particular importance for other sports, considering that comparable questions have been raised in European American football and basketball. Therefore, the legal issues associated with the SL have the potential to…

Abuse of dominance, Cartels, Competition law, Russia

(Elbert, Nazaretsky, Rakov & Co)/ /3 Comments

On March 4, 2021, the Supreme Court of the Russian Federation (the Court) issued its first Guidance for Courts, the so-called Plenum, which specifically concerned competition law. The guidance wants to ensure uniformity of practice in the application of Russia’s competition law, the so-called Antimonopoly Law. Already in 2008, the former Supreme Commercial Court of…