Conscious parallelism refers to the situation where a company is aware of its competitor’s actions, such as price increases, and independently chooses to adopt the same strategy without any direct communication with the competitor. This practice is sometimes viewed negatively and may be perceived as a conspiracy.
Consciously parallel behaviour refers to a situation where a company is aware of its competitor’s actions, such as increasing prices, and chooses to independently take the same action. This behaviour is often viewed as indicative of a conspiracy in antitrust cases. For instance, if Company A raises the price of their widgets and Company B, being aware of this, also raises the price of their widgets, it can be considered an instance of consciously parallel behaviour. In this scenario, Company B is consciously parallel to Company A because they are aware of Company A’s price hike and decide to follow suit. This behaviour can be seen as evidence of collusion, as it suggests that the two companies may have conspired to raise prices together rather than making independent pricing decisions.
– “Consciously parallel” refers to a situation where two or more individuals or entities independently engage in similar actions or behaviors without any direct coordination or agreement.
– No, consciously parallel conduct is not inherently illegal. It becomes problematic if it involves anticompetitive behavior, such as price-fixing or market allocation, which violates antitrust laws.
– While consciously parallel conduct alone may not be sufficient evidence of collusion, it can be a factor considered by courts or regulatory authorities when determining whether collusion or anticompetitive behavior has occurred.
– The key distinction lies in the presence or absence of direct coordination or agreement between the parties involved. Collusion involves explicit communication or agreement to engage in anticompetitive behavior, while consciously parallel conduct occurs without such coordination.
– If consciously parallel conduct involves anticompetitive behavior, it can lead to severe legal consequences, including fines, penalties, civil lawsuits, and even criminal charges under antitrust laws.
– Yes, consciously parallel conduct can be justified as mere coincidence if there is no evidence of coordination or agreement between the parties involved. However, this defence may be scrutinized by authorities or courts to ensure it is not a cover-up for collusion.
– Possible defences may include demonstrating lack of coordination or agreement, proving legitimate business justifications for the conduct, or showing that the conduct is within the bounds of fair competition.
– Yes, individuals involved in consciously parallel conduct can be held personally liable if their actions violate antitrust laws. This can result in fines, penalties, and even imprisonment, depending on the severity of the offense.
– Businesses should establish comprehensive antitrust compliance programs, provide training to employees, monitor industry practices, and seek legal advice to ensure their actions do not violate antitrust laws.
– If you suspect consciously parallel conduct in your industry, you should consult with an attorney specializing in antitrust law. They can guide you on the appropriate steps to take, such as gathering evidence, reporting to regulatory authorities, or filing a complaint.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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