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Study Notes

Legal Collusion between Businesses

A Level
AQA, Edexcel, OCR, IB

Not all instances of collusive behaviour are deemed to be illegal by the European Union Competition Authorities.

Practices are not prohibited if the respective agreements "contribute to improving the production or distribution of goods or to promoting technical progress in a market."

  • Development of improved industry standards of production and safety which benefit the consumer – a good example is joint industry standards in Europe for mobile phone chargers
  • Information sharing designed to give better information to consumers
  • Research joint-ventures and know-how agreements which seek to promote innovative and inventive behaviour in a market. The EU has introduced a "R&D Block Exemption Regulation" for this

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