Exploring the detection of cartels for investigation purposes

Abstract

This research explores the methods for detection of cartels for investigation purposes. Cartels involve an agreement of concerted practice between two or more competitors who engage in fixing prices and/or trading conditions, dividing markets, and/or collusive tendering. The scourge of cartel operation is often collusive, deceptive and secretive, and such an operation is conducted by means of a conspiracy among a group of firms, with the aim of making it difficult to detect or to prove its existence without the assistance of a cartel member. Cartels lessen or prevent competition in the market and deter to achieve more effective and efficient economy. The aim of this research was to explore detection methods that might be used to detect cartels for investigation purposes. The researcher explored the methods that might be used by competition authorities that enable investigators to be proactive in cartel detection. The researcher utilised national and international literature sources and interviewed participants to gather information about the methods and best practices used to detect cartels.