CARTELS IN THE DIGITAL ERA: CHALLENGES AND OBSTACLES

Abstract

Cartels agreements are contracted between market participants with the aim of hindering, restricting or distorting competition. The paper first provides a definition of cartel agreements and their categorization, with reference to the most common types of cartel agreements. The author elaborates on the price algorithm, as one of the most prevalent forms of competitors' collusion in the digital domain. Given that the digital age provides infinite opportunities for contracting illegal agreements and competition distortion, the author presents the challenges and obstacles enountered by national competition authorities in various countries, and describes how they established effective mechanisms to combat cartels. In particular, the author refers to the amended German Act against Restraints of Competition, by means of which Germany became the first country in Europe to introduce radical measures in the battle against technological giants, whose economic power frequently exceeds the power of states. Finally, the author underscores the need for the states to work together to combat digital cartels.