Keywords: competition ordinance, competition law
The Cardinal Sins
Last week we discussed the value of competition law compliance and left you with the Golden Rules of competition.
This week we begin our discussion on the types of conduct that may infringe the Competition Ordinance with the Cardinal Sins: the four most serious types of anti-competitive conduct that will almost always contravene competition law.
|First Cardinal Sin: Price
Price fixing is where two or more competitors agree (whether formally or informally, directly or indirectly, or by a nod and a wink) to set prices (including any component or formulae of price), for the sale of goods or services.
|Third Cardinal Sin: Market
Market sharing is where competitors carve up a market, whether by the type of goods or services they sell, or by the type or location of customers they serve, and agree not to "overstep" into each others' territory.
|Second Cardinal Sin: Output
Output limitation is where competitors agree to limit the volume or type of goods or services they supply.
|Fourth Cardinal Sin: Bid
Bid rigging is where, after having agreed among themselves who the winner should be, competitors participate in a bid for the sake of appearance and use tactics to engineer that result.
Each of the Cardinal Sins entails an "agreement" between competitors. Next week, we will explore the concept of an "agreement" and start to take a deeper look at the various forms each Cardinal Sin may take.
Originally published 18 March 2015
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