Tacit collusion Definition

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GLOSSARY

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What does Tacit collusion mean?

Coordinated behaviour between different undertakings which is possible due to the nature of the market without the need for the undertakings to reach an agreement.

The concept of tacit collusion creates significant problems for competition authorities because of the absence of evidence of intent and also because there is a difficult dividing line with legitimate parallel behaviour in oligopolistic markets. Tacit collusion can form the basis for a finding that separate firms hold a position of collective dominance.

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Dominant position under Article 102 TFEU

Dominant position under Article 102 TFEU Article 102 TFEU prohibits undertakings which hold a dominant position within the EU, or a substantial part of it, from abusing that dominant position, insofar as it may affect trade between Member States. It is often unclear whether a company is 'dominant' for the purposes of EU competition law. Dominance does not necessarily entail having a majority share of the market, but a company with a share of 50% will typically be presumed to be dominant. Unless a company has been involved in previous competition law cases, or findings of dominance in a merger context, it may be uncertain as to whether it is dominant as a matter of law. This Practice Note considers in further detail what constitutes a ‘dominant position’. The legal test The test for establishing dominance has been set out by the Court of Justice as: 'a position of economic strength enjoyed by an undertaking which enables it to prevent effective competition being maintained on the relevant market by giving...

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