Cartels

Competition law prohibits any form of horizontal agreements aimed at coordinating prices and restricting output. In absence of direct and indisputable evidence, however, it might be difficult to establish whether a group of firms has colluded.

Economic analysis is increasingly being used to distinguish between conduct that is due to unlawful agreements and that which arises from independent decisions. Economic theories and quantitative methods may help in shedding light on whether certain business practices and market structures are consistent with the hypothesis that market participants are acting independently or whether the firms are coordinating their behavior.

Even when the existence of a cartel is beyond dispute, economic analysis is crucial to quantify the impact of the agreement on prices and quantities and to determine the appropriate fine.

In addition, some horizontal agreements, such as joint ventures or standard setting arrangements, are not illegal, provided they generate efficiency benefits for consumers that could not be achieved in a less restrictive manner. Economic tools and techniques play an important role in assessing whether the expected efficiency gains outweigh the possible anticompetitive effects.

If your company is suspected of having formed a cartel, we can draw on the most recent developments in industrial organization and employ advanced empirical techniques to support you in developing a defense strategy.

We have extensive experience in advising companies involved in cartel investigations in a variety of markets, ranging from gasoline and jet fuel to infant milk, beauty products, health testing devices, marine paints and insurance.

If your company needs advice to tackle any competition economics issue related to a cartel allegation, contact us.

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