ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Being involved in a cartel and participating in illegal price fixing is prohibited by competition law in the UK and considered an offence under the Competition Act 1998 and the Enterprise Act 2002.
Detailed explanation-2: -Cartel activity in the UK may be punished using both civil and criminal law. The civil enforcement regime is contained in Chapter I of the Competition Act 1998 (CA98).
Detailed explanation-3: -Cartels often fix prices, define trading terms, and allocate trade or market share rules to achieve economies of scale. Cartels are illegal in the United States and regulated by anti-trust laws.
Detailed explanation-4: -The UK criminal cartel offence was created by the Enterprise Act 2002, with the intention of criminalising and deterring the most serious and damaging forms of anti-competitive agreements, known as “hard core cartels".