Cartels and Collusion in EU Competition Law

A cartel is a group of companies that collude to limit competition and fix prices, divide markets, or restrict output in order to increase profits. Cartels are considered a serious violation of EU competition law and can lead to significant fines for the companies involved.

The EU has the power to investigate and impose fines on companies that engage in cartel activities. The fines can be up to 10% of a company's global annual revenue for each year it participated in the cartel. Additionally, companies can face damages claims from customers and competitors who have been harmed by the cartel.

Collusion refers to the secret agreement between two or more companies to act together to limit competition. Some examples of collusion include price fixing, bid rigging, or market sharing. Collusion is considered to be a serious violation of EU competition law and can lead to significant fines for the companies involved.

It's important to note that companies are liable for any collusion if they are proven to have participated in it, even if they were not the initiator of the agreement.