Cartels Exposed: Firms Colluding to Hike Prices, Authorities Struggle to Curb Anticompetitive Practices
Collusion is when companies work together to raise prices unfairly. Competition policy aims to stop this. There are two types of collusion: explicit (direct communication) and tacit (no direct communication). Only explicit collusion is usually illegal. Competition authorities punish firms and individuals involved in cartels. Leniency programs help catch cartels. Firms should have compliance programs to prevent illegal behavior by employees.