Private International Cartels – An Overview

Cartels are considered to be, ‘the most egregious violations of competition law’. Cartel operations raise prices, restrict supply, inhibit innovation, and result in artificially concentrated markets, waste, and inefficiency. They are therefore condemned in competition laws around the world. Currently, there are countries whose national competition authorities recognise cartels as a top enforcement priority. However in many countries, the legal and regulatory response to cartel activity is very inadequate and there thus exists an urgent need to create more awareness regarding the devastating effects of cartels. Efforts are being made to formulate a coherent international approach with respect to cartel enforcement. This briefing paper is a concise overview of the definitional aspect of international cartels (a particular type of cartel), the harm they cause, the existing legal and regulatory framework, and options for reform