Define: Conscious Parallelism

Conscious parallelism refers to a situation where multiple competitors in a particular market independently adopt similar business practices or strategies without any explicit agreement or collusion. While conscious parallelism may lead to similar pricing, marketing, or other competitive behaviours among firms operating within the same industry, it does not necessarily imply illegal coordination or anticompetitive conduct. However, conscious parallelism may raise antitrust concerns if there is evidence of concerted action or implicit agreements among competitors to fix prices, allocate markets, or restrain competition. Courts typically analyse various factors, such as communications among competitors, market conditions, and evidence of collusion, to determine whether conscious parallelism constitutes an antitrust violation. Despite its potential for antitrust scrutiny, conscious parallelism can also be a natural consequence of market forces, such as common industry practices, technological advancements, or changes in consumer preferences. As such, distinguishing between lawful conscious parallelism and unlawful collusion requires careful examination of the specific facts and circumstances surrounding the behaviour of the competitors involved.

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This glossary post was last updated: 29th March 2024.