Pandemic and Cartels
Shortage of supplies and surge in prices of essentials goods
is a rising phenomena since the outbreak of corona virus pandemic. Suppliers of
essential goods and other products see this pandemic as opportunity to create
cartels and manage the supply and prices of goods. There needs to be a push by
regulators and law enforcement to ensure market division and distribution.
The European Commission is of the view that “global
cartel enforcement can benefit from the complementing the two main enforcement
models.” One of the enforcers and second of the prosecutors; where enforces
decision is final and prosecution is certified in court.
Cartels and other anti-competitive
behavior will result in a rise of leniency applications to competition
authorities, globally, along with a rise of criminal cartels looking to build
up both financial and political capital.
Mexican cartels are reported to show
their charitable side by providing aid to communities and by trying to win their
hearts and minds. Donations to reputable charities and government, is an
opportunity that these cartels will seek to exploit during pandemic.
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