Transcript Quantifying Cartel Duration Using DG Comp Case Reports

Quantifying Cartel Duration Using DG
Comp Case Reports
(Work in Progress)
By
Oindrila De
Centre for Competition Policy
DG Competition Data Workshop, ACLE 2008
www.ccp.uea.ac.uk
Structure of This Presentation
• EC Cartel Database
• Some General Characteristics of EC Prosecuted Cartels
• Some Preliminary Data on Duration of EC Cartels
• Concluding Remarks and Way Forward
EC Cartel Database
• Database contains EC Cartel Cases from 1990-2007
• Data Source: Competition Commission’s decisions from
EC Official Journals and CFI and ECJ judgements
• Included cases under Article 81 (1), re-adoptions,
exemptions under 81 (3) and negative clearance, their
renewals and cases under ECSC treaty
• 98 total cases in the database (3 re-adopted cases).
EC Cartel Database: Types of Decisions
Category
Number of Cases
Exemption Without Conditions/ Obligations
5
Exemption With Conditions/ Obligations
9
Infringement Art. 65 ECSC treaty
5
Infringement Art.81 with fine
64
Infringement Art.81 without fine
9
Infringement Art.81 with fine and Infringement Art. 82
6
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EC Cartel Database: Reasons to Initiate
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Number of Cases
Characteristics of EC Cartels: Industry
Classification
30
25
20
15
10
5
0
Industry
Characteristics of EC Cartels: Category of
Undertakings
Category
Number of Cases
Undertakings Only
76
Undertakings and Association (s) of Undertakings
7
Association (s) of Undertakings Only
15
Characteristics of EC Cartels: Number of
Undertakings
Histogram of Number of Undertakings
35
Number of Cartel Cases
30
25
20
15
10
5
0
2 firms
3-4 firms
5-10 firms
11-20 firms
Number of Undertakings Groups
More than 20
firms
Characteristics of EC Cartels: Cartels’ Market
Coverage
Histogram of Cartel's Market Coverage
30
Number of Cartel Cases
25
20
15
10
5
0
0-25
25-50
50-75
Market Coverage
75-90
90-100
Characteristics of EC Cartels: Types of
Agreements
Category
Number of Cases
Price Fixing Only
28
Market sharing only
17
Price fixing and market sharing only
14
Neither Price fixing nor market sharing
1
Price fixing and other supplementary agreements
10
Market sharing and other supplementary agreements
7
Price fixing, market sharing and other supplementary
agreements
21
Characteristics of EC Cartels: Types of
Supplementary Agreements
Category
Number of Cases
Information Exchange Agreement
28
Horizontal Restrictions
7
Supply Restrictions
5
Capacity Restrictions
4
Collective Exclusive Dealing
2
Characteristics of EC Cartels: Ring leader and
Market leader
Ring leader
19
Market leader as Ring leader
13
Ring leader but not Market Leader
1
Market leader but not Ring leader
25
Duration: Proven Duration of EC Cartels
Duration: Information on Suspected Duration
Category
Number of Cases
Suspected Duration date mentioned
21
Suspected Duration date not mentioned
68
Suspected but exact date not mentioned
9
Duration: Proven vis-à-vis Suspected Duration
Proven vis a vis Suspected Duration
70
60
Suspected Duration
50
40
30
20
10
0
0
10
20
30
40
Proven Duration
50
60
70
Duration: Different Dimensions of Duration
Duration
Number of Cases
Different members with different duration
36
Different sub-agreements with different duration
6
Different sub-product markets with different duration
3
Different geographic markets with different duration
1
Duration: Entry into and Exit from the
Cartel
Entry/ Exit
Number of Cases
Entry into Cartels
32
Exit from the Cartel
28
Both Entry and Exit
23
Duration and Number of Undertakings
Duration and Number of Undertakings
35
30
Duration
25
20
15
10
5
0
0
10
20
30
40
Number of Undertakings
50
60
Duration and Cartels’ Coverage
35
30
Duration
25
20
15
10
5
0
0
20
40
60
Cartel's Coverage
80
100
120
Average Duration and Number of
Agreements
Number of Agreements
Number of Cases
Average Duration
Single
45
7.94
Two
29
8.53
Three
22
10.1
Four
1
11
Five
1
7
Way Forward
• Adding Variables (e.g. demand, merger etc)
• Multivariate analysis of duration
• Survival analysis