ABSTRACT
In this chapter we shall be dealing with cartels. The word cartel can have a very specific meaning but we intend it to cover a wide range of phenomena which are often referred to as restrictive business practices. We shall regard these two terms as interchangeable. Here we are concerned with collusive arrangements between otherwise independent firms in which they restrict their competitive behaviour, one against the other. We must also take account of behaviour which takes the form of the imposition of restrictions upon the market activity of other firms. An example of the former would be a price fixing agreement. The latter is exemplified by an agreement between a producer group and a dealer group in which they both agree to deal exclusively with each other and thus exclude producers and dealers not party to the arrangements. Such exclusions may be imposed individually as well as collectively. For the most part, and in contrast to the previous chapter, the phenomena under scrutiny will be private in character. The caveat ‘for the most part’ is necessary because from time to time we may encounter cases where state-owned enterprises join forces with the private variety in order to restrict competition.
