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Definition

This term is normally used in conjuction with the competition authorities, one of whose functions is to prevent price collusion between companies. Most of these cases are settled with some or all of the companies paying a fine which can be up to 10% of their annual turnover. In 2013 the competition authorities came to an agreement with 15 construction companies over their collusion. Arcellor Mittal (ACL) agreed to a fine of R1,5bn for collusion in the steel industry. The prevention of collusion creates a more competitive economy where prices are generally lower.

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