Abstract

The detection of cartels in free-market economies is the top priority for any antitrust agencies across the world. To combat this threat, the authorities have instituted a number of Leniency and Whistleblowing procedures. Cartels represent a significant economic danger to the free market; collusive agreements result in a decrease in the productivity or the welfare of the market. This article intends to concentrate on the regulation of anti-competitive activities of trade organisations, namely their cartelization. While examining the requirements of an agreement which is an essential element to prove cartelization, the oligopolistic market structure and the standard of proof along with concerted practices amounting to agreement by the parties are discussed. In addition, the legality of creating a “crisis cartel” in the event of a pandemic is explored in the context of Indian antitrust legislation and the advisories issued by the Competition Commission of India. The recent pandemic has established a major issue for the competition authorities around the world, to allow the companies to form a cartel on one hand and to safeguard the rights of consumers, enterprises and free market on the other. This paper examines the many elements about the cartelization in which the businesses are operating that the competition authorities can scrutinise during a cartel inquiry, including those elements that are related to the businesses’ operations during the pandemic. It will also deal in detail with the constituents of the practice of cartelization and the standard of proof required to prove the same. Also, the paper tries to connect the same with the ongoing situation of the COVID-19 pandemic and its impact on the same.

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