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

(Lenz & Staehelin)/ /Leave a comment

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…

Antitrust, Cartels, Competition, Enforcement, Investigations, Leniency

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

Cartel enforcement in Canada is heavily dependent on the use of informants. This is explained by two principal factors. First, cartel conduct is, by its very nature, secretive and carried out in the shadows of business life. Second, Canada’s Competition Bureau, which is responsible for investigating cartels, is subject to budget constraints that limit its…

Cartels, European Union

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US and EU antitrust law – antipodes as far as individual liability is concerned? The US and EU approaches with regard to individual liability for competition law infringements have traditionally been notoriously different. US antitrust enforcement is well-known for its use of criminal sanctions against individuals, from fines to imprisonment. Since 2004, an individual who…

Antitrust, Cartels, Competition, Dominance, Enforcement, Mergers, Policy

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

Competition Law in Canada – Top 10 Issues for 2013 This is a post of an article written by my partners Anita Banicevic, Richard Elliott, Charles Tingley and me **************************************** 2012 was a busy year for competition law and policy in Canada. Below we consider how some of the important developments in 2012 will shape…

Antitrust, Cartels

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

The Canadian Track Record in Punishing Cartel Conduct Canada has a long history of pursuing and prosecuting cartels (more commonly referred to in Canadian competition law as “conspiracies”). The first criminal anti-cartel prohibition was enacted in Canada in 1889, one year prior to passage of the Sherman Act in the United States. Since that time,…