What is a cartel?
Cartels deprive consumers and other businesses of a fair deal.
A cartel is where two or more businesses agree not to compete with each other. This conduct can take many forms, including price fixing, dividing up markets, rigging bids or restricting output of goods and services.
Cartels deprive consumers and other businesses of a fair deal.
A cartel is where two or more businesses agree not to compete with each other. This conduct can take many forms, including price fixing, dividing up markets, rigging bids or restricting output of goods and services.
Types of cartel conduct
Price fixing
Price fixing is where two or more businesses agree on what prices they will charge to avoid having to compete which each other. Price fixing is not limited to agreements between competitors setting a specific price for goods or services – it also includes competitors agreeing to fix any part of a price, or to set price according to an agreed formula. |
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Bid rigging
Bid rigging or collusive tendering occurs when there is an agreement among some or all of the bidders about who should win a bid between them. This may involve some potential bidders not bidding for a tender to support the designated winner and they might also agree the prices that the each party will bid for a tender. Such an agreement prevents open and effective competition and means procurers are unlikely to achieve best value for money for their business, customers, and in some cases, taxpayers. |
Market sharing
Market sharing occurs when businesses collude to carve up markets and not compete for the same customers. This could be in relation to the sale of a specific product, a geographic area or a particular type of customer. |
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Restricting output
Restricting output is when two or more competing buyers or sellers agree to prevent, restrict, or limit the goods or services they are buying or selling or the goods or services that would likely be bought and sold.
Restricting output is when two or more competing buyers or sellers agree to prevent, restrict, or limit the goods or services they are buying or selling or the goods or services that would likely be bought and sold.
If you have any questions as a Dulux Accredited member, feel free to get in touch by email, phone or online form below.
Dulux Accredited has organised for their members to receive complimentary tax & legal advice as a member benefit.
Dulux Accredited has organised for their members to receive complimentary tax & legal advice as a member benefit.
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Frequently asked questions below
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