Role of Cartels in Market Manipulation: Case Studies and Impacts on Consumers

Abstract

This article provides an overview of how cartels manipulates the market and what are the problems that are being faced by the consumers. Cartels are said to be formed when two or more business enterprises makes an agreement formally or informally to promote their own interest which distorts the free and fair competition in the market by controlling the prices of goods and services. When it comes to the enforcement of anti trust law in India there are certain core areas in the Competition Act, 2002. The Competition Act increases the possibility of dealing successfully with the cartels and any anti- competitive agreement. Although, Competition Commission of India needs further strengthening with the operational and functional guidelines for its activities. The paper begins with an introduction to a cartel after that the authors explores about the origin of the cartels and types of cartels. It is also very important for us to understand a cartel so a chapter is being dedicated to it. The study also highlights the affects of cartelization in the market and an analysis of Competition Act, 2002. Furthermore, we’ve attached few renowned case studies. In conclusion to this paper we have understood that cartel is a very dangerous phenomenon in the business alliance and how CCI has brought a drastic change in last few years in the market