Tacit Collusion: A Solution in Search of a Problem

Abstract

It is argued that, in certain oligopolistic markets, the structural conditions are such that the players on the market will be able to earn supra-competitive profits without having to enter into an agreement or concerted practice thereto. This article outlines the development of the ‘solution’ to the problem of tacit collusion. It will then argue that, while the case-law in this area has put new tools in the armoury of competition regulators, it has failed to actually address the problem of tacit collusion. It will then briefly consider whether tacit collusion is even a problem that ought to concern us in the first place.

Keywords: Tacit Collusion, Article 102, Oligopoly, Italian Flat Glass, Airtours, Laurent Piau

JEL Classification: D43, L4