Mills cartel – eating for more

This is the allegation. The Hungarian competition authority, the Gazdasági Versenyhivatal, conducted a dawn raid at 8 millers. Three other undertakings are also investigated. The authority suspects that the undertakings have dived market among themselves. The suspected infringement started according to the information available to the authority in 2004 and is still running. The allegation is that ehe undertakings held several meetings at hotels, motels and at their offices where they have divided up the market. The also colluded on minimum prices and future prices. Mover the collusion involved partly also public procurements. They even planed to set up a fund for compensating foreign undertakings if they do not enter the Hungarian market.

 

Maybe some comments: We should not make early judgements, but if the allegations are true, the investigation of the authority is more than welcome. There have been few hard-core cartel cases recently and the publicity of such cases and the possible large fines are very important for deterrence. If the authority concluded that the allegations were true, the undertakings can expect a large fine.

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