Monday 13 February 2017

Cartel | Definition | Types | Examples

cartel definition


If a cartel is generally speaking a contractual transaction between at least two companies in the same stage of production, with the aim to gain an advantage on the competition to achieve. From a legal point of view, the companies remain independent and independent. However, the situation is different in terms of profitability. In the case of a cartel, this is generally abandoned completely or at least partially.


Basically agree companies in a cartel agreement economic action consistent. In the case of violations of the previously agreed contract, contractual penalties are due, which are usually at a very high level.


The state is of course reluctant to make such economic arrangements, especially with regard to pricing. For this reason, there is also the Cartel Office, which is to detect and prevent possible illegal price fixing of large companies at an early stage. In the eyes of the supervisory authority, in particular mineral oil groups, which have often been suspected, are prohibited price agreements. However, proof of this is hardly possible.



Types of Cartels 



  • Price / sub-pricing

  • Quotation quota

  • Area cartels

  • Rationalization

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