Article: Hard-Core Cartels, the USA , the EU and Developing Countries.(United States, European Union)

Introduction

Explicit price-fixing or market division agreements are known as "hard core" cartels among private producers from multiple countries. These agreements are illegal in the U.S. and the European Union and are prosecuted by the competition policy authorities in these countries and also in some developing countries where lack of antitrust legislation is a problem. Producers form a cartel in order to limit competition. By restricting output and increasing price to a price set by a monopolist controlling the whole market, profits are maximised. This is one reason why developing countries are used as werehouses by cartels. When such cartels are prosecuted, ...

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