Restricting output
Restricting output

The following Competition practice note provides comprehensive and up to date legal information covering:

  • Restricting output
  • Restricting output—checklist

By controlling output, companies can control the price that their product sells at, and by restricting production, the price rises.

Supply to the market can be restricted either by parties to the cartel agreeing to limit their own production or an agreement to control alternative sources of supply such as imports into the market.

Where companies seek to control their own capacity, this is typically achieved by capping production using sales quotas with penalties for over-production.

Restrictions on production could not be achieved without transparency around sales and productio

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