A report on Competition law and Cartel

Judge Coke in the 17th century thought that general restraints on trade were unreasonable.
Headquarters of the Rhenish-Westphalian Coal Syndicate, Germany (at times the best known cartel in the world), around 1910
Elizabeth I assured monopolies would not be abused in the early era of globalization.
The printing equipment company American Type Founders (ATF) explicitly states in its 1923 manual that its goal is to "discourage unhealthy competition" in the printing industry.
Senatorial Round House by Thomas Nast, 1886
There is considerable controversy among WTO members, in green, whether competition law should form part of the agreements
John Stuart Mill believed the restraint of trade doctrine was justified to preserve liberty and competition.
Paul Samuelson, author of the 20th century's most successful economics text, combined mathematical models and Keynesian macroeconomic intervention. He advocated the general success of the market but backed the American government's antitrust policies.
Robert Bork
Scottish Enlightenment philosopher Adam Smith was an early enemy of cartels.
The economist's depiction of deadweight loss to efficiency that monopolies cause

prohibiting agreements or practices that restrict free trading and competition between business. This includes in particular the repression of free trade caused by cartels.

- Competition law

Because cartels are likely to have an impact on market positions, they are subjected to competition law, which is executed by governmental competition regulators.

- Cartel
Judge Coke in the 17th century thought that general restraints on trade were unreasonable.

4 related topics with Alpha

Overall

Does Price Fixing Destroy Liberty? (1920) by George Howard Earle Jr.

Price fixing

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Anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

Anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

Does Price Fixing Destroy Liberty? (1920) by George Howard Earle Jr.

Price fixing is permitted in some markets but not others; where allowed, it is often known as resale price maintenance or retail price maintenance.

When the agreement to control price is sanctioned by a multilateral treaty or is entered by sovereign nations as opposed to individual firms, the cartel may be protected from lawsuits and criminal antitrust prosecution.

Future collusive profits

Collusion

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Deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right.

Deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right.

Future collusive profits
Set higher prices

To differentiate from a cartel, collusive agreements between parties may not be explicit; however, the implications of cartels and collusion are the same.

Collusion is illegal in the United States, Canada and most of the EU due to antitrust laws, but implicit collusion in the form of price leadership and tacit understandings still takes place.

This 1879 anti-monopoly cartoon depicts powerful railroad barons controlling the entire rail system.

Monopoly

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Market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing.

Market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing.

This 1879 anti-monopoly cartoon depicts powerful railroad barons controlling the entire rail system.
Surpluses and deadweight loss created by monopoly price setting
A 1902 anti-monopoly cartoon depicts the challenges that monopolies may create for workers

Likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods.

In many jurisdictions, competition laws restrict monopolies due to government concerns over potential adverse effects.

The Syndics of the Drapers' Guild by Rembrandt, 1662.

Guild

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Association of artisans and merchants who oversee the practice of their craft/trade in a particular area.

Association of artisans and merchants who oversee the practice of their craft/trade in a particular area.

The Syndics of the Drapers' Guild by Rembrandt, 1662.
One of the legacies of the guilds: the elevated Windsor Guildhall originated as a meeting place for guilds, as well as a magistrates' seat and town hall.
Traditional hand forged guild sign of a glazier — in Germany. These signs can be found in many old European towns where guild members marked their places of business. Many survived through time or staged a comeback in industrial times. Today they are restored or even newly created, especially in old town areas.
Coats of arms of guilds in a town in the Czech Republic displaying symbols of various European medieval trades and crafts
The medieval Merchant Guild House in Vyborg, Russia
A center of urban government: the Guildhall, London (engraving, c. 1805)
Locksmith, 1451
The Haarlem Painter's Guild in 1675, by Jan de Bray.
An example of the last of the British Guilds meeting rooms c. 1820
Shoemakers, 1568

Guilds are sometimes said to be the precursors of modern cartels.

Modern antitrust law could be said to derive in some ways from the original statutes by which the guilds were abolished in Europe.