Competition, Cartels and Their Regulation

By John Perry Miller | Go to book overview

CHAPTERM 3
ALTERNATIVE APPROACHES TO THE CONTROL OF COMPETITION* AN OUTLINE OF EUROPEAN CARTEL LEGISLATION AND ITS ADMINISTRATION

WILLIAM BOSERUP AND UFFE SCHLICHTKRULL

The Monopolies Control Authority, Copenhagen, Denmark

At the XXVIth Conference of the Inter-Parliamentary Union held in London in 1930, a resolution was passed unanimously1 which stated, among other things,

"...that cartels, trusts and other analogous combines are natural phenomena of economic life towards which it is impossible to adopt an entirely negative attitude. Seeing, however, that those combines may have a harmful effect both as regards public interests and those of the State, it is necessary that they should be controlled. This Control should not take the form of an interference in economic life likely to affect its normal development. It should simply seek to establish a supervision over possible abuses and to prevent those abuses.

An efficacious means of fighting such abuses and a basic condition for eventual control is to be found in publicity, which implies the obligation for cartels and similar combines to announce their existence and to register in the books of the State. To this should be added a stipulation making compulsory written agreements for such combines.

Conventions which have not been made in writing, or which have not been communicated and submitted to the competent authority within the given time, should not be entitled to claim legal protection.

Registered cartels, trusts and similar organisations should be made publicly known within a given time by the office of registry, whereas the agreements themselves should only be published, either partly or as a whole, in the event of well-ascertained abuses, according to the gravity of the case.

In order to examine and to decide whether registered agreements do not contain provisions dangerous to public interests or to the State, and in order to examine and decide whether abuses have been committed, there should be created in each

____________________
*
This chapter reflects the situation in the summer of 1960.

-59-

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