Drug trafficking organizations, especially in South America, are often referred to as “drug cartels.” These organizations meet the technical definition of agreements. They are loose related groups that establish rules among themselves to control the price and supply of a good, namely illicit drugs. One of the cartel members, ABB, headquartered in Switzerland, had escaped a fine for being a “whistleblower” and providing the Commission with decisive evidence. In the UK, cartels are an example of restrictive business practices and are banned. Companies can still try to avoid tacit agreements and formal agreements. One cartel, the Organization of the Petroleum Exporting Countries (OPEC), has survived as a powerful global entity. Created in the 1960s, OPEC became very effective in the 1970s, when it almost quadrupled the price of oil. Although agreements between its members have failed from time to time, few economists dispute that OPEC remains an effective cartel, since it controls supply and sometimes calculates more than double what economists consider the competitive price of oil. Their longevity could be explained by the fact that OPEC is a combination of governments rather than corporations. One of the most well-known cartels in the world is the OPEC Organization of the Petroleum Exporting Countries. In the 1970s, OPEC was able to triple the price of oil in response to events in the Middle East.

They were able to do this because they controlled more than 70% of the world`s oil supply. Hardcore cartels (if companies agree not to compete with each other) are the most serious infringements of competition law. They hurt customers by raising prices and limiting supply, making goods and services totally prohibitive for some buyers and unnecessarily expensive for others. Cartels act to the detriment of the consumer, as their activities are aimed at raising the price of a product or service above the market price. However, their behaviour is also harmful in another way. Agreements discourage new entrants and act as a barrier to entry. The lack of competition due to the price cartel leads to a lack of innovation. Today, pricing by individuals is illegal under the antitrust laws of more than 140 countries.

Among the products of the international cartels pursued are lysine, citric acid, graphite electrodes and vitamins. [24] The conviction prevails in many countries that cartels run counter to free and fair competition, which is considered the backbone of political democracy. [25] Maintaining cartels is increasingly difficult for cartels. While international cartels cannot be regulated as a whole by individual nations, their individual activities in national markets are concerned. [26] Agreements are considered to be activities in the public interest. Indeed, the cartels aim for the OECD to launch a database of about 200 references on pure and hard global cartels since 2012, from about fifty lawyers. As a general rule, cartels are economically unstable, as members are incentivized to cheat by selling below the agreed cartel price or by selling more than the cartel`s production quotas. Many agreements that attempt to price products are unsuccessful in the long run. Empirical studies conducted by 20th century cartels have shown that the average duration of cartels discovered is between 5 and 8 years. [13] Once an agreement is dismantled, the incentives to create a new agreement return and the agreement can be reconstituted.

According to some reports, OPEC is one of the cartels known to the public that do not follow this economic cycle. An agreement is an organization resulting from a formal agreement between a group of manufacturers of goods or services to regulate the supply of price regulation or manipulation. . . .

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