Abstract

The research paper discusses the concept of Hub and Spoke Cartel, which is not so familiarized and well-known concept under the Indian Competition Law, until now after its recognition by the Competition Amendment Act, 2023. This is particularly a form of collusion scheme which includes agreement both at the vertical and horizontal level that leads into producing anti-competitive effect on the market. As a distinctive feature from a normal or conventional form of cartelization, it includes a ‘hub’ the vertical level who deals with the major aspects of cartelization and act as a facilitator in effecting a tacit horizontal agreement, the connecting ‘rim’, among the competitors at the horizontal level acting as ‘spokes’. This research paper discusses about the major characteristics and elements of a Hub and Spokes Cartel (H&S Cartel) and how it differs from a normal cartel. It also gives a brief mention about the objective of an H&S Cartel and what purpose do they serve. The paper also deals with distinguishing HS Cartel from RPM (resale price maintenance). Further it discusses about the scheme of functioning of H&S Cartel in the digital sector through online platform operators and price algorithms. Finally the paper discusses about some major case laws in other jurisdictions analyzing the concept of such cartels.

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