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
2019 was an eventful year in Spanish antitrust enforcement. Here is a brief overview of 2019’s major legal changes and relevant developments in relation to Competition law in Spain, as well as what to expect in 2020. I. New Administration On 8 January 2020, Mr Pedro Sánchez was reappointed as Spanish Prime Minister….
Introduction On 4 July 2019 a long-awaited Dutch legislative proposal regarding sustainability initiatives (“Wet ruimte voor duurzaamheidsinitiatieven“) was submitted to the Dutch House of Representatives. The proposal aims to foster collaboration between undertakings towards sustainability goals by removing the barrier of competition law. This is an interesting development because of at least two reasons: (i)…
Recent Developments in Canadian Cartel Enforcement: Is Business Becoming Immune to the Competition Bureau’s Immunity/Leniency Programs? Charles Tingley, Mark Katz, Anita Banicevic As noted in our July 26/19 post on Recent Developments in Canadian Merger Review, merger enforcement in Canada is already seeing the impact of the March 2019 appointment of Matthew Boswell as the…
Flashback In January 2019, the Bulgarian Commission for Protection of Competition (“BCPC”) issued a Statement of Objections against in total 24 Bulgarian undertakings for bid-rigging in public procurement procedures under the National Program for Energy Efficiency of Multifamily Residential Buildings (“Energy Efficiency Program”), carried out in the municipalities of Targovishte (Northeast Bulgaria) and Gotse Delchev (Southwest…
The Federal Council aims at tightening up the Cartel Act in order to combat the foreclosure of the Swiss market and the price discrimination against Swiss corporate customers. For this purpose, the Federal Council has adopted a draft bill and a dispatch to Parliament addressing the people’s initiative “stop Switzerland’s high prices – the fair…
Introduction On 19 March 2019, the highest administrative court in the Netherlands (het College van Beroep voor het bedrijfsleven, “CBb”) ruled that the Dutch Competition Authority (“the ACM”) can hold private equity investors liable for cartel infringements committed by their portfolio companies.[1] According to the ACM, and now confirmed by the CBb, the private equity…
In its preliminary ruling in Skanska Industrial Solutions and Others[1], the Court of Justice has ruled on the fundamental question of who is liable to pay compensation in an action for damages for breach of Article 101 TFEU. Is the answer to be found in EU law or national law? Can the person liable to…
The UK’s Competition and Markets Authority (“CMA”) recently welcomed the Court of Appeal’s dismissal of a challenge brought against a decision of the Competition Appeal Tribunal (“CAT”) by Balmoral, a supplier of steel water tanks. The CMA had fined Balmoral £130,000 in December 2016 for a single exchange of pricing information which, in the particular…
On 26 February 2019, the Dutch Authority for Consumers & Markets (“ACM”) published renewed guidelines on both vertical and horizontal restraints. These documents are likely published to reflect the new strategy of the ACM: the stricter enforcement of vertical and horizontal restraints with a focus on vertical price fixing, online sales restraints, purchasing cartels and agreements…
After almost three years of investigation, the Bulgarian Commission for Protection of Competition (“BCPC”) has issued a Statement of Objections against in total 24 Bulgarian undertakings for bid-rigging in public procurement procedures under the National Program for Energy Efficiency of Multifamily Residential Buildings (“Energy Efficiency Program”). The bid-rigging was considered a breach of Article 15…
