Crown, Echo cleared of Cartel Behavior

http://www.businessday.com.au/business/crown-echo-cleared-of-cartel-behaviour-20131119-2xsvx.html

This article provides an example of what happens when companies try to break competition laws and form cartels. Although the companies involved were cleared of the charges, it shows how seriously the ACCC takes its competition laws. Echo and Crown were not charged with creating a cartel and now face harsh competition over territory in Brisbane.

1 Comment »

  1. charlesa Said,

    November 22, 2013 @ 3:41 pm

    This article calls back to our discussion of cartels in class. Both companies wanted to be the only casino hotel in a specific city, in order to raise prices and work as a monopolist. However, now that there is government persecution against them not abiding by the competition laws, there will perhaps be more casino hotels being being in Sydney. Once Echo’s exclusivity license is up in 2019, Crown will be able to start building casino hotels in Sydney, stopping the monopoly. It will be interesting to see if there are more entries into the business once this happens.

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