Cartels
What is a cartel?
A cartel consists of competing businesses which secretly and unlawfully agree not to compete with each other. Cartel conduct may include collusion or agreements in relation to pricing, markets, procurement and supply/output.
A cartel agreement does not have to be written down in order to be unlawful. Informal ‘gentleman’s agreements’ or ‘understandings’ between competitors are prohibited. Common cartel conduct includes:
Cartels can take many different forms, in any market. Cartels in the labour market, for example, can manifest in agreements between competitors not to hire each other’s employees or to limit the wages on offer.
If you suspect a cartel, then you should report it to the CCPC. If you prefer, you can report anonymously.
How are cartels harmful?
Rather than competing to beat each other’s prices or innovating to improve their goods and services, cartels unlawfully agree to avoid competing with each other. This results in higher prices, reduced choices and/or lower quality.
What should you do if you are involved in a cartel?
Consider applying for immunity under the CCPC and DPP’s Cartel Immunity Programme (CIP) or leniency under the CCPC’s Administrative Leniency Policy (ALP). The CIP and ALP encourage self-reporting of cartel conduct in return for immunity and/or leniency.
What are the penalties for cartels in Ireland?
Under the Competition Act 2002, cartel activity can result in:
- criminal convictions with up to 10 years imprisonment
- fines of up to €50 million or 20% of turnover for individuals or undertakings
- director disqualification for five years
