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Collusion
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== Examples == [[File:Set higher prices.jpg|thumb|Set higher prices]] * In the example in the picture, the dots in Pc and Q represent competitive industry prices. If firms collude, they can limit production to Q2 and raise the price to P2. Collusion usually involves some form of agreement to seek a higher price. *When companies discriminate, price collusion is less likely, so the discount factor needed to ensure stability must be increased. In such price competition, competitors use delivered pricing to discriminate in space, but this does not mean that firms using delivered pricing to discriminate cannot collude.<ref>Heywood, Li, D., & Ye, G. (2020). Does price discrimination make collusion less likely? a delivered pricing model. Journal of Economics (Vienna, Austria), 131(1), 39–60. https://doi.org/10.1007/s00712-020-00699-4</ref> === United States === * [[Market division]] and [[price-fixing]] among manufacturers of heavy [[electricity|electrical]] equipment in the 1960s, including [[General Electric]].<ref>{{cite book | title = Encyclopedia of white-collar & corporate crime |isbn = 9780761930044| url = https://books.google.com/books?id=0f7yTNb_V3QC&q=market+division+collusion+heavy+electrical+equipment++1960&pg=PA377|last1 = Salinger|first1 = Lawrence M.|year = 2005}}</ref> * An attempt by [[Major League Baseball]] owners to [[Baseball collusion|restrict players' salaries]] in the mid-1980s. * The sharing of potential contract terms by [[NBA]] free agents in an effort to help a targeted franchise circumvent the salary cap. * Price fixing within [[food]] manufacturers providing cafeteria food to [[school]]s and the [[military]] in 1993. * Market division and output determination of livestock feed additive, called [[lysine]], by companies in the US, [[Japan]] and [[South Korea]] in 1996, [[Archer Daniels Midland]] being the most notable of these.<ref>Hunter-Gault, Charlayne (October 15, 1996). "ADM: Who's Next?". MacNeil/Lehrer Newshour (PBS). https://www.pbs.org/newshour/bb/business/october96/adm_10-15.html {{Webarchive|url=https://web.archive.org/web/20070930041515/http://www.pbs.org/newshour/bb/business/october96/adm_10-15.html |date=2007-09-30 }}. Retrieved on 2007-10-17.</ref> * [[Glossary of poker terms#C|Chip dumping]] in [[poker]]<ref>{{Cite web |title=Collusion Strategy and Analysis for Texas Hold'em by T. Hayes |url=https://www.lybrary.com/collusion-strategy-and-analysis-for-texas-holdem-p-922246.html |access-date=2022-12-27 |website=Lybrary.com |language=en}}</ref> or any other card game played for money. *[[Ben & Jerry's|Ben and Jerry's]] and [[Häagen-Dazs]] collusion of products in 2013: Ben and Jerry's makes chunkier flavors with more treats in them, while Häagen-Dazs sticks to smoother flavors.<ref>Sullivan, Christopher John. ''Three Essays on Product Collusion''. Diss. University of Michigan, 2016. https://deepblue.lib.umich.edu/bitstream/handle/2027.42/138544/sullivcj_1.pdf?sequence=1&isAllowed=y</ref> * Google and Apple against employee poaching, a collusion case in 2015 wherein it was revealed that both companies agreed not to hire employees from one another in order to halt the rise in wages.<ref name="TG">{{cite web |url=https://www.theguardian.com/technology/2014/apr/24/apple-google-settle-antitrust-lawsuit-hiring-collusion |title=''A Critique of Political Economy''|website=[[TheGuardian.com]]|date=24 April 2014}}</ref> * Google has been hit with a series of antitrust lawsuits. In October 2020, the US Department of Justice filed a landmark lawsuit alleging that Google unlawfully boxed out competitors by reaching deals with phone makers, including Apple and Samsung, to be the default search engine on their devices.<ref name="cnet.com">{{Cite web |title=Google's three antitrust battles: Here's what you need to know |url=https://www.cnet.com/tech/tech-industry/googles-three-antitrust-battles-heres-what-you-need-to-know-faq/ |access-date=2023-04-04 |website=CNET |language=en}}</ref> Another lawsuit filed by nearly 40 attorneys general on Dec. 17, 2020 alleges that Google’s search results favored its own services over those of more-specialized rivals, a tactic that harmed competitors.<ref name="cnet.com"/> === Europe === * The illegal collusion between the giant German automakers BMW, Daimler and Volkswagen, discovered by the [[European Commission]] in 2019, to hinder technological progress in improving the quality of vehicle emissions in order to reduce the cost of production and maximize profits.<ref name=DW>{{cite web |url=https://www.dw.com/en/european-commission-finds-german-automakers-illegally-colluded-on-emissions-technology/a-48218578 |title=''European Commission finds German automakers illegally colluded on emissions technology''|website=[[Deutsche Welle]]}}</ref> === Australia === * Japanese shipping company Kawasaki Kisen Kaisha Ltd ([[K Line|K-Line]]) were fined $34.5 million by the Federal Court for engaging in criminal cartel conduct. The court found that K-Line participated in a cartel with other shipping companies to fix prices on the transportation of cars, trucks, and buses to Australia between 2009 and 2012. K-Line pleaded guilty in April 2018 and the fine is the largest ever imposed under the Competition and Consumer Act. The court noted that the penalty should serve as a strong warning to businesses that cartel conduct will not be tolerated and will result in serious consequences.<ref>{{Cite web |last=Commission |first=Australian Competition and Consumer |date=2019-08-02 |title=K-Line convicted of criminal cartel conduct and fined $34.5 million |url=https://www.accc.gov.au/media-release/k-line-convicted-of-criminal-cartel-conduct-and-fined-345-million |access-date=2023-04-19 |website=www.accc.gov.au |language=English}}</ref> * Between 2004 and 2013, Dr Esra Ogru, the former CEO of an Australian biotech company called Phosphagenics, colluded with two colleagues by using false invoicing and credit card reimbursements to defraud her employer of more than $6.1 million.<ref>{{Cite web |title=14-296MR Former CEO and two Melbourne men jailed following theft of millions from Phosphagenics Limited |url=https://asic.gov.au/about-asic/news-centre/find-a-media-release/2014-releases/14-296mr-former-ceo-and-two-melbourne-men-jailed-following-theft-of-millions-from-phosphagenics-limited/ |access-date=2023-04-19 |website=asic.gov.au |language=en}}</ref><ref>{{Cite web |title=Combating collusion - Cartels, Monopolies - Australia |url=https://www.mondaq.com/australia/cartels-monopolies/493088/combating-collusion |access-date=2023-04-19 |website=www.mondaq.com}}</ref>
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