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Legal Terms – Cartel
A cartel is a group of independent businesses that come together to establish a monopoly in a specific industry, either inside a country or on a global scale. Cartels typically entail a clandestine, spoken, and frequently casual agreement among firms to refrain from competing with each other. Cartel members commonly reach agreements over several aspects, including: • pricing; • production levels; • discounts; • credit conditions; • designated customers to supply; • certain regions to supply; • manipulation of contract outcomes (bid rigging).
Each of the aforementioned categories of agreement is explicitly forbidden by the Competition Act 1998 in the United Kingdom and Article 101 of the Treaty on the Functioning of the European Union within the European Union. Furthermore, under the Enterprise Act 2002, persons in the UK can be prosecuted for engaging in specific cartels that involve dishonest participation in activities such as price fixing, market sharing, limitation of production or supply, or bid rigging. Cartels can arise in virtually any sector and encompass products or services at the stages of production, distribution, or retail. Certain industries are particularly vulnerable to the formation of cartels.
Some entities may differ from others due to their unique structure or operational methods. The UK competition authorities identify these factors as the primary conditions for anti-competitive behavior: • Limited number of competitors • Products with similar characteristics, limiting competition based on quality or service • Established communication channels between competitors • Industry experiencing excess capacity or general recession
It also means a pact between warring nations that outlines specific non-aggressive dealings, particularly with the handling and transfer of detainees.
A cartel is a group of independent businesses that come together to establish a monopoly in a specific industry, either inside a country or on a global scale. Cartels typically entail a clandestine, spoken, and frequently casual agreement among firms to refrain from competing with each other. Cartel members commonly reach agreements over several aspects, including: • pricing; • production levels; • discounts; • credit conditions; • designated customers to supply; • certain regions to supply; • manipulation of contract outcomes (bid rigging).
Each of the aforementioned categories of agreement is explicitly forbidden by the Competition Act 1998 in the United Kingdom and Article 101 of the Treaty on the Functioning of the European Union within the European Union. Furthermore, under the Enterprise Act 2002, persons in the UK can be prosecuted for engaging in specific cartels that involve dishonest participation in activities such as price fixing, market sharing, limitation of production or supply, or bid rigging. Cartels can arise in virtually any sector and encompass products or services at the stages of production, distribution, or retail. Certain industries are particularly vulnerable to the formation of cartels.
Some entities may differ from others due to their unique structure or operational methods. The UK competition authorities identify these factors as the primary conditions for anti-competitive behavior: • Limited number of competitors • Products with similar characteristics, limiting competition based on quality or service • Established communication channels between competitors • Industry experiencing excess capacity or general recession
It also means a pact between warring nations that outlines specific non-aggressive dealings, particularly with the handling and transfer of detainees.
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