Kartelliksi

Kartelliksi is a Finnish term that broadly refers to the phenomenon of cartels, which are agreements between competing firms to fix prices, limit production, or divide markets. This practice is illegal in most jurisdictions, including Finland, under competition law. The Finnish Competition and Consumer Authority (KKV) is responsible for investigating and prosecuting cartel activities.

Cartels can take various forms. Price fixing occurs when competitors agree on a minimum price for their products or services. Market sharing involves dividing customers or geographic areas among cartel members, ensuring that each firm faces limited competition within its allocated segment. Bid rigging is another common cartel practice, where companies collude on bids for contracts, often in public procurement processes.

The economic consequences of cartels are generally negative. They lead to higher prices for consumers, reduced output, and stifled innovation. Businesses that are not part of the cartel may also suffer from unfair competition. Detecting cartels can be challenging as they often operate in secret, but authorities rely on a range of tools, including leniency programs that offer reduced penalties to companies that report cartel activity and cooperate with investigations.

Penalties for cartel participation in Finland can be severe, including substantial fines for companies and, in some cases, criminal charges for individuals involved. The purpose of these penalties is to deter anti-competitive behavior and to protect the integrity of the market.