The OFT investigate 2 types of Monopoly abuse
Collusive Behaviour
Chapter 1 of the competition Act investigates restrictive practices (and which mirrors article 81 in the EU).These restrictive practices include:
- Price Fixing. This occurs when competitors agree to increase prices together
- Vertical Price Fixing. These are arrangements when firms agree with its retailer to keep prices high. This could involve Resale Price Maintenance which prevents retailers cutting prices.
- Another example is supermarkets could collude to keep prices to farmers low
- Collusive tendering. This is when firms agree to both put in high prices to win a contract and prevent price competition e.g. Concrete industry in the 1980s
- Agreements to limit output and share out markets
- Sharing information which can be used to avoid price competition
Essays and Revision Notes on Competition Policy
Evaluation of UK Competition Policy
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