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How much information are we allowed to share with our competitors, for example, in a benchmarking study or through our trade association?

Posted by Phil Voice on November 25, 2013 at 9:19am in Business

This is an extract from the Law Donut website - Cartels FAQ's

"A trade association or forum discussing new developments and best practice would not generally present a problem. Again, however, you need to ensure that this does not lead to anti-competitive behaviour. For example, agreeing common industry standards might reduce competition between members."

http://www.lawdonut.co.uk/law/finance-and-strategy/mergers-joint-ventures-and-cartels/cartels-20-faqs

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Tags: anti-competitive, cartel, competition, legal
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Replies

  • Steve London Stone November 25, 2013 at 4:59pm

    Cartels and monopolies can only be created in industries which have huge barriers to entry. Industries like banking and energy supply.

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    Phil Voice November 25, 2013 at 5:07pm

    That's not the case Steve:

    Do the cartel rules still apply if we are small businesses?

    Yes. Whatever the size of your business, you must not take part in a cartel or commit any of the 'hardcore' offences such as price-fixing (see 2).

    Other competition regulations generally focus on businesses that are large enough to have an appreciable impact on the market. In some specialist markets, however, such businesses could be small.

    Steve London Stone said:

    Cartels and monopolies can only be created in industries which have huge barriers to entry. Industries like banking and energy supply.

  • Steve London Stone November 25, 2013 at 10:05pm
    Whether the cartel rules apply or not to small business it would be nigh on impossible for any small businesses to create a cartel because there would be plenty of other small businesses who weren't willing to go along with it. Whereas with banking and energy companies for example there is only a limited pool of suppliers to choose from , making a cartel or monopoly much easier to achieve.
    What did you have in mind with your original post phil?
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