SlideShare a Scribd company logo
HUB-AND-SPOKE
ARRANGEMENTS
Presentation by the Secretariat to the
Competition Committee
4 December 2019
A cartel between competitors on one
market side (spokes) that is co-ordinated
through a vertically related, common
intermediary (hub), usually a supplier or a
retailer.
The information exchange between the competitors is
mostly or solely indirect.
Definition
2
Supplier or retailer induced
3
Supplier
Retailer
5
Retailer
4
Retailer
3
Retailer
2
Retailer
1
Retailer
Supplier
5
Supplier
4
Supplier
3
Supplier
2
Supplier
1
Direct information exchange between retailer(s) and supplier(s) that
would be perfectly legal in the vertical relationship may become
problematic, when this information is passed on to horizontal
competitors by the common hub.
What are the incentives for the hub to enable
or facilitate a cartel on the other market side?
Economic dependency, passing on of input cost
increases, implementation of a cartel agreement,
foreclosure of competitors …
Enabling market structures?
Market power on at least one market side?
(No) “typical” product markets?
Movie pricing, vodka, dairy products, toys, coffee,
sweets, paint & varnishes, drugstore items, e-books,
…
Economic questions
4
 How to determine if inherently legitimate
conversations between suppliers and retailers are
used for anti-competitive purposes?
 How to distinguish between hub-and-spoke and
parallel vertical agreements/exchanges?
 Liability of the spokes
 For passing on/receiving of information they did not ask for?
 Liability of the hub
 Degree of awareness, intent, motive?
 Not a horizontal competitor – restriction of competition?
 RPM as an implementation device – or vertically
imposed – or bilaterally agreed?
Legal questions
5
Algorithms
Parallel use – joint use
Monitoring device
Co-ordination device
Platforms
Across platform parity agreements as commitment
device (US e-books case)
Direct co-ordination of sellers’ retail prices by platform
(through algorithms)
Digital challenges
6
Proof of exchange of information over
at least two instances can be difficult.
Proof of intent/state of mind – rarely
documented.
Scope of proceedings can easily
become very large – prioritization.
Enforcement challenges
7

More Related Content

What's hot

Developing Marketing Strategies and Plans
Developing Marketing Strategies and PlansDeveloping Marketing Strategies and Plans
Developing Marketing Strategies and Plans
Tribhuvan University
 
Brand positioning
Brand positioning Brand positioning
Brand positioning
Er Gupta
 
21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY
21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY
21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY
Mahasarakham Business School, Mahasarakham University
 
Fashion channel case study ppt by ikram ullah kakar
Fashion channel case study ppt by ikram ullah kakarFashion channel case study ppt by ikram ullah kakar
Fashion channel case study ppt by ikram ullah kakar
Ikramullah Panezai
 
International marketing
International marketingInternational marketing
International marketing
gahuja
 
Competitive Analysis and a Brief Guide to Competitor Analysis
Competitive Analysis and a Brief Guide to Competitor AnalysisCompetitive Analysis and a Brief Guide to Competitor Analysis
Competitive Analysis and a Brief Guide to Competitor Analysis
Gregar Donaven Valdehueza
 
What marketing decisions do these marketing intermediaries make?
What marketing decisions do these marketing intermediaries make?What marketing decisions do these marketing intermediaries make?
What marketing decisions do these marketing intermediaries make?
Sameer Mathur
 
Market Intelligence System
Market Intelligence SystemMarket Intelligence System
Market Intelligence System
Paul Schumann
 
Case analysis :Gino SA distribution channel management
Case analysis :Gino SA distribution channel managementCase analysis :Gino SA distribution channel management
Case analysis :Gino SA distribution channel management
Sameer Mathur
 
Chapter05
Chapter05Chapter05
Chapter05
dvrs
 
ITC Interrobang season 8 marketing case competition 2018 doc
ITC Interrobang season 8 marketing case competition 2018 docITC Interrobang season 8 marketing case competition 2018 doc
ITC Interrobang season 8 marketing case competition 2018 doc
Bhargava Ram
 
Ending the war between sales and marketing marketing
Ending the war between sales and marketing marketingEnding the war between sales and marketing marketing
Ending the war between sales and marketing marketing
Harishankar Sahu
 
Sales, sales management, sales strategy
Sales, sales management, sales strategySales, sales management, sales strategy
Sales, sales management, sales strategy
Việt Long Plaza
 
Competition Based Pricing
Competition Based PricingCompetition Based Pricing
Competition Based Pricing
tellstptrisakti
 
Spurious Products in Rural area
Spurious Products in Rural areaSpurious Products in Rural area
Spurious Products in Rural area
Ankit Sha
 
RURAL MARKETING PPT
RURAL MARKETING PPTRURAL MARKETING PPT
RURAL MARKETING PPT
ashapriyagoud
 
Mary Kay Case Study
Mary Kay Case StudyMary Kay Case Study
Mary Kay Case Study
kristenbak
 
Got milk
Got milkGot milk
Got milk
SIESCOMS
 
Clorox
CloroxClorox
Ideal Brand Plan
Ideal Brand PlanIdeal Brand Plan
Ideal Brand Plan
Beloved Brands Inc.
 

What's hot (20)

Developing Marketing Strategies and Plans
Developing Marketing Strategies and PlansDeveloping Marketing Strategies and Plans
Developing Marketing Strategies and Plans
 
Brand positioning
Brand positioning Brand positioning
Brand positioning
 
21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY
21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY
21ST CENTURY BRAND MANAGEMENT: GROWTH & PROFITABILITY
 
Fashion channel case study ppt by ikram ullah kakar
Fashion channel case study ppt by ikram ullah kakarFashion channel case study ppt by ikram ullah kakar
Fashion channel case study ppt by ikram ullah kakar
 
International marketing
International marketingInternational marketing
International marketing
 
Competitive Analysis and a Brief Guide to Competitor Analysis
Competitive Analysis and a Brief Guide to Competitor AnalysisCompetitive Analysis and a Brief Guide to Competitor Analysis
Competitive Analysis and a Brief Guide to Competitor Analysis
 
What marketing decisions do these marketing intermediaries make?
What marketing decisions do these marketing intermediaries make?What marketing decisions do these marketing intermediaries make?
What marketing decisions do these marketing intermediaries make?
 
Market Intelligence System
Market Intelligence SystemMarket Intelligence System
Market Intelligence System
 
Case analysis :Gino SA distribution channel management
Case analysis :Gino SA distribution channel managementCase analysis :Gino SA distribution channel management
Case analysis :Gino SA distribution channel management
 
Chapter05
Chapter05Chapter05
Chapter05
 
ITC Interrobang season 8 marketing case competition 2018 doc
ITC Interrobang season 8 marketing case competition 2018 docITC Interrobang season 8 marketing case competition 2018 doc
ITC Interrobang season 8 marketing case competition 2018 doc
 
Ending the war between sales and marketing marketing
Ending the war between sales and marketing marketingEnding the war between sales and marketing marketing
Ending the war between sales and marketing marketing
 
Sales, sales management, sales strategy
Sales, sales management, sales strategySales, sales management, sales strategy
Sales, sales management, sales strategy
 
Competition Based Pricing
Competition Based PricingCompetition Based Pricing
Competition Based Pricing
 
Spurious Products in Rural area
Spurious Products in Rural areaSpurious Products in Rural area
Spurious Products in Rural area
 
RURAL MARKETING PPT
RURAL MARKETING PPTRURAL MARKETING PPT
RURAL MARKETING PPT
 
Mary Kay Case Study
Mary Kay Case StudyMary Kay Case Study
Mary Kay Case Study
 
Got milk
Got milkGot milk
Got milk
 
Clorox
CloroxClorox
Clorox
 
Ideal Brand Plan
Ideal Brand PlanIdeal Brand Plan
Ideal Brand Plan
 

Similar to Hub-and Spoke arrangements – SECRETARIAT – December 2019 OECD discussion

ditc_ccpb0009_en
ditc_ccpb0009_enditc_ccpb0009_en
ditc_ccpb0009_en
yared teka
 
Economic-Rationale-for-Public-Sector-Interventions .pptx
Economic-Rationale-for-Public-Sector-Interventions .pptxEconomic-Rationale-for-Public-Sector-Interventions .pptx
Economic-Rationale-for-Public-Sector-Interventions .pptx
LEOGENARDLOBATON1
 
Rebalancing the Supply Chain.
Rebalancing the Supply Chain.Rebalancing the Supply Chain.
Rebalancing the Supply Chain.
Ira Kristina Lumban Tobing
 
Failure3
Failure3Failure3
Failure3
Corey Topf
 
Ethics in advertising
Ethics in advertisingEthics in advertising
Ethics in advertising
Rohit Kumar
 
S7 - Distribution Strategies.pdf
S7 - Distribution Strategies.pdfS7 - Distribution Strategies.pdf
S7 - Distribution Strategies.pdf
JMHemachandra
 
Market Failure_MAF.ppt
Market Failure_MAF.pptMarket Failure_MAF.ppt
Market Failure_MAF.ppt
hafidhisaidi
 
Promotional Products
Promotional ProductsPromotional Products
Promotional Products
Quad Analytix
 
Chapter 04
Chapter 04Chapter 04
Chapter 04
intro
 
Market Studies and Competition - Miguel de la Mano - Executive Vice President...
Market Studies and Competition - Miguel de la Mano - Executive Vice President...Market Studies and Competition - Miguel de la Mano - Executive Vice President...
Market Studies and Competition - Miguel de la Mano - Executive Vice President...
OECD Directorate for Financial and Enterprise Affairs
 
Running head Economic Analysis of Business ProposalEconomic A.docx
Running head Economic Analysis of Business ProposalEconomic A.docxRunning head Economic Analysis of Business ProposalEconomic A.docx
Running head Economic Analysis of Business ProposalEconomic A.docx
charisellington63520
 
20131030 OECD - Competition and value distribution along the food chain - Sup...
20131030 OECD - Competition and value distribution along the food chain - Sup...20131030 OECD - Competition and value distribution along the food chain - Sup...
20131030 OECD - Competition and value distribution along the food chain - Sup...
FIAB
 
Advertising ethics
Advertising ethicsAdvertising ethics
Advertising ethics
mdjameer
 
MARKETING
MARKETINGMARKETING
MARKETING
NanasAhnasy
 
EFFECTIVE DISTRIBUTION MANAGEMENT
EFFECTIVE DISTRIBUTION MANAGEMENTEFFECTIVE DISTRIBUTION MANAGEMENT
EFFECTIVE DISTRIBUTION MANAGEMENT
nazim ali
 
Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...
Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...
Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...
OECD Directorate for Financial and Enterprise Affairs
 
Marketing
MarketingMarketing
Study ecommerce goods_en
Study ecommerce goods_enStudy ecommerce goods_en
Study ecommerce goods_en
soyooz
 
PPP on Market Split.pptx
PPP on Market Split.pptxPPP on Market Split.pptx
PPP on Market Split.pptx
Rajendra Lal
 
What are the major trends with Marketing Intermediaries ?
What are the major trends with Marketing Intermediaries ?What are the major trends with Marketing Intermediaries ?
What are the major trends with Marketing Intermediaries ?
Sameer Mathur
 

Similar to Hub-and Spoke arrangements – SECRETARIAT – December 2019 OECD discussion (20)

ditc_ccpb0009_en
ditc_ccpb0009_enditc_ccpb0009_en
ditc_ccpb0009_en
 
Economic-Rationale-for-Public-Sector-Interventions .pptx
Economic-Rationale-for-Public-Sector-Interventions .pptxEconomic-Rationale-for-Public-Sector-Interventions .pptx
Economic-Rationale-for-Public-Sector-Interventions .pptx
 
Rebalancing the Supply Chain.
Rebalancing the Supply Chain.Rebalancing the Supply Chain.
Rebalancing the Supply Chain.
 
Failure3
Failure3Failure3
Failure3
 
Ethics in advertising
Ethics in advertisingEthics in advertising
Ethics in advertising
 
S7 - Distribution Strategies.pdf
S7 - Distribution Strategies.pdfS7 - Distribution Strategies.pdf
S7 - Distribution Strategies.pdf
 
Market Failure_MAF.ppt
Market Failure_MAF.pptMarket Failure_MAF.ppt
Market Failure_MAF.ppt
 
Promotional Products
Promotional ProductsPromotional Products
Promotional Products
 
Chapter 04
Chapter 04Chapter 04
Chapter 04
 
Market Studies and Competition - Miguel de la Mano - Executive Vice President...
Market Studies and Competition - Miguel de la Mano - Executive Vice President...Market Studies and Competition - Miguel de la Mano - Executive Vice President...
Market Studies and Competition - Miguel de la Mano - Executive Vice President...
 
Running head Economic Analysis of Business ProposalEconomic A.docx
Running head Economic Analysis of Business ProposalEconomic A.docxRunning head Economic Analysis of Business ProposalEconomic A.docx
Running head Economic Analysis of Business ProposalEconomic A.docx
 
20131030 OECD - Competition and value distribution along the food chain - Sup...
20131030 OECD - Competition and value distribution along the food chain - Sup...20131030 OECD - Competition and value distribution along the food chain - Sup...
20131030 OECD - Competition and value distribution along the food chain - Sup...
 
Advertising ethics
Advertising ethicsAdvertising ethics
Advertising ethics
 
MARKETING
MARKETINGMARKETING
MARKETING
 
EFFECTIVE DISTRIBUTION MANAGEMENT
EFFECTIVE DISTRIBUTION MANAGEMENTEFFECTIVE DISTRIBUTION MANAGEMENT
EFFECTIVE DISTRIBUTION MANAGEMENT
 
Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...
Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...
Economic analysis and evidence in abuse cases – Break-out Session 1 – Techniq...
 
Marketing
MarketingMarketing
Marketing
 
Study ecommerce goods_en
Study ecommerce goods_enStudy ecommerce goods_en
Study ecommerce goods_en
 
PPP on Market Split.pptx
PPP on Market Split.pptxPPP on Market Split.pptx
PPP on Market Split.pptx
 
What are the major trends with Marketing Intermediaries ?
What are the major trends with Marketing Intermediaries ?What are the major trends with Marketing Intermediaries ?
What are the major trends with Marketing Intermediaries ?
 

More from OECD Directorate for Financial and Enterprise Affairs

The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
OECD Directorate for Financial and Enterprise Affairs
 
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
OECD Directorate for Financial and Enterprise Affairs
 
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
OECD Directorate for Financial and Enterprise Affairs
 
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
OECD Directorate for Financial and Enterprise Affairs
 
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussionPro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussionPro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussionArtificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
OECD Directorate for Financial and Enterprise Affairs
 
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussionArtificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
OECD Directorate for Financial and Enterprise Affairs
 
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
OECD Directorate for Financial and Enterprise Affairs
 
OECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - HighlightsOECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - Highlights
OECD Directorate for Financial and Enterprise Affairs
 
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussionEx-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussionEx-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
OECD Directorate for Financial and Enterprise Affairs
 
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
OECD Directorate for Financial and Enterprise Affairs
 

More from OECD Directorate for Financial and Enterprise Affairs (20)

The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
The Intersection between Competition and Data Privacy – KEMP – June 2024 OECD...
 
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
The Intersection between Competition and Data Privacy – COLANGELO – June 2024...
 
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
The Intersection between Competition and Data Privacy – CAPEL – June 2024 OEC...
 
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
The Intersection between Competition and Data Privacy – OECD – June 2024 OECD...
 
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussionPro-competitive Industrial Policy – LANE – June 2024 OECD discussion
Pro-competitive Industrial Policy – LANE – June 2024 OECD discussion
 
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussionPro-competitive Industrial Policy – OECD – June 2024 OECD discussion
Pro-competitive Industrial Policy – OECD – June 2024 OECD discussion
 
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
Artificial Intelligence, Data and Competition – ČORBA – June 2024 OECD discus...
 
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussionArtificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – OECD – June 2024 OECD discussion
 
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
Artificial Intelligence, Data and Competition – SCHREPEL – June 2024 OECD dis...
 
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussionArtificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
Artificial Intelligence, Data and Competition – LIM – June 2024 OECD discussion
 
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
Competition and Regulation in Professions and Occupations – OECD – June 2024 ...
 
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...Competition and Regulation in Professions and Occupations – ROBSON – June 202...
Competition and Regulation in Professions and Occupations – ROBSON – June 202...
 
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
Competition and Regulation in Professional Services – KLEINER – June 2024 OEC...
 
OECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - HighlightsOECD Competition Trends 2024 - Highlights
OECD Competition Trends 2024 - Highlights
 
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
Use of Economic Evidence in Cartel Cases – CAMACHO – December 2023 OECD discu...
 
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KOVACIC – December 2023 OECD discussion
 
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussionEx-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – KWOKA – December 2023 OECD discussion
 
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussionEx-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – FLETCHER – December 2023 OECD discussion
 
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussionEx-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
Ex-post Assessment of Merger Remedies – OECD – December 2023 OECD discussion
 
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
Use of Economic Evidence in Cartel Cases – DAVIES – December 2023 OECD discus...
 

Recently uploaded

ACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPE
ACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPEACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPE
ACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPE
Charmi13
 
IEEE CIS Webinar Sustainable futures.pdf
IEEE CIS Webinar Sustainable futures.pdfIEEE CIS Webinar Sustainable futures.pdf
IEEE CIS Webinar Sustainable futures.pdf
Claudio Gallicchio
 
ServiceNow CIS-ITSM Exam Dumps & Questions [2024]
ServiceNow CIS-ITSM Exam Dumps & Questions [2024]ServiceNow CIS-ITSM Exam Dumps & Questions [2024]
ServiceNow CIS-ITSM Exam Dumps & Questions [2024]
SkillCertProExams
 
怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样
怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样
怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样
kekzed
 
Gamify it until you make it Improving Agile Development and Operations with ...
Gamify it until you make it  Improving Agile Development and Operations with ...Gamify it until you make it  Improving Agile Development and Operations with ...
Gamify it until you make it Improving Agile Development and Operations with ...
Ben Linders
 
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
gpww3sf4
 
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdfWhy Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Ben Linders
 
Legislation And Regulations For Import, Manufacture,.pptx
Legislation And Regulations For Import, Manufacture,.pptxLegislation And Regulations For Import, Manufacture,.pptx
Legislation And Regulations For Import, Manufacture,.pptx
Charmi13
 
Using-Presentation-Software-to-the-Fullf.pptx
Using-Presentation-Software-to-the-Fullf.pptxUsing-Presentation-Software-to-the-Fullf.pptx
Using-Presentation-Software-to-the-Fullf.pptx
kainatfatyma9
 
Disaster Management project for holidays homework and other uses
Disaster Management project for holidays homework and other usesDisaster Management project for holidays homework and other uses
Disaster Management project for holidays homework and other uses
RIDHIMAGARG21
 
2 December UAE National Day - United Arab Emirates
2 December UAE National Day - United Arab Emirates2 December UAE National Day - United Arab Emirates
2 December UAE National Day - United Arab Emirates
UAE Ppt
 
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdfBRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
Robin Haunschild
 
Prsentation for VIVA Welike project 1semester.pptx
Prsentation for VIVA Welike project 1semester.pptxPrsentation for VIVA Welike project 1semester.pptx
Prsentation for VIVA Welike project 1semester.pptx
prafulpawar29
 
Proposal: The Ark Project and The BEEP Inc
Proposal: The Ark Project and The BEEP IncProposal: The Ark Project and The BEEP Inc
Proposal: The Ark Project and The BEEP Inc
Raheem Muhammad
 
Genesis chapter 3 Isaiah Scudder.pptx
Genesis    chapter 3 Isaiah Scudder.pptxGenesis    chapter 3 Isaiah Scudder.pptx
Genesis chapter 3 Isaiah Scudder.pptx
FamilyWorshipCenterD
 

Recently uploaded (15)

ACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPE
ACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPEACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPE
ACTIVE IMPLANTABLE MEDICAL DEVICE IN EUROPE
 
IEEE CIS Webinar Sustainable futures.pdf
IEEE CIS Webinar Sustainable futures.pdfIEEE CIS Webinar Sustainable futures.pdf
IEEE CIS Webinar Sustainable futures.pdf
 
ServiceNow CIS-ITSM Exam Dumps & Questions [2024]
ServiceNow CIS-ITSM Exam Dumps & Questions [2024]ServiceNow CIS-ITSM Exam Dumps & Questions [2024]
ServiceNow CIS-ITSM Exam Dumps & Questions [2024]
 
怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样
怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样
怎么办理(lincoln学位证书)英国林肯大学毕业证文凭学位证书原版一模一样
 
Gamify it until you make it Improving Agile Development and Operations with ...
Gamify it until you make it  Improving Agile Development and Operations with ...Gamify it until you make it  Improving Agile Development and Operations with ...
Gamify it until you make it Improving Agile Development and Operations with ...
 
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
原版制作贝德福特大学毕业证(bedfordhire毕业证)硕士文凭原版一模一样
 
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdfWhy Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
Why Psychological Safety Matters for Software Teams - ACE 2024 - Ben Linders.pdf
 
Legislation And Regulations For Import, Manufacture,.pptx
Legislation And Regulations For Import, Manufacture,.pptxLegislation And Regulations For Import, Manufacture,.pptx
Legislation And Regulations For Import, Manufacture,.pptx
 
Using-Presentation-Software-to-the-Fullf.pptx
Using-Presentation-Software-to-the-Fullf.pptxUsing-Presentation-Software-to-the-Fullf.pptx
Using-Presentation-Software-to-the-Fullf.pptx
 
Disaster Management project for holidays homework and other uses
Disaster Management project for holidays homework and other usesDisaster Management project for holidays homework and other uses
Disaster Management project for holidays homework and other uses
 
2 December UAE National Day - United Arab Emirates
2 December UAE National Day - United Arab Emirates2 December UAE National Day - United Arab Emirates
2 December UAE National Day - United Arab Emirates
 
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdfBRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
BRIC_2024_2024-06-06-11:30-haunschild_archival_version.pdf
 
Prsentation for VIVA Welike project 1semester.pptx
Prsentation for VIVA Welike project 1semester.pptxPrsentation for VIVA Welike project 1semester.pptx
Prsentation for VIVA Welike project 1semester.pptx
 
Proposal: The Ark Project and The BEEP Inc
Proposal: The Ark Project and The BEEP IncProposal: The Ark Project and The BEEP Inc
Proposal: The Ark Project and The BEEP Inc
 
Genesis chapter 3 Isaiah Scudder.pptx
Genesis    chapter 3 Isaiah Scudder.pptxGenesis    chapter 3 Isaiah Scudder.pptx
Genesis chapter 3 Isaiah Scudder.pptx
 

Hub-and Spoke arrangements – SECRETARIAT – December 2019 OECD discussion

  • 1. HUB-AND-SPOKE ARRANGEMENTS Presentation by the Secretariat to the Competition Committee 4 December 2019
  • 2. A cartel between competitors on one market side (spokes) that is co-ordinated through a vertically related, common intermediary (hub), usually a supplier or a retailer. The information exchange between the competitors is mostly or solely indirect. Definition 2
  • 3. Supplier or retailer induced 3 Supplier Retailer 5 Retailer 4 Retailer 3 Retailer 2 Retailer 1 Retailer Supplier 5 Supplier 4 Supplier 3 Supplier 2 Supplier 1 Direct information exchange between retailer(s) and supplier(s) that would be perfectly legal in the vertical relationship may become problematic, when this information is passed on to horizontal competitors by the common hub.
  • 4. What are the incentives for the hub to enable or facilitate a cartel on the other market side? Economic dependency, passing on of input cost increases, implementation of a cartel agreement, foreclosure of competitors … Enabling market structures? Market power on at least one market side? (No) “typical” product markets? Movie pricing, vodka, dairy products, toys, coffee, sweets, paint & varnishes, drugstore items, e-books, … Economic questions 4
  • 5.  How to determine if inherently legitimate conversations between suppliers and retailers are used for anti-competitive purposes?  How to distinguish between hub-and-spoke and parallel vertical agreements/exchanges?  Liability of the spokes  For passing on/receiving of information they did not ask for?  Liability of the hub  Degree of awareness, intent, motive?  Not a horizontal competitor – restriction of competition?  RPM as an implementation device – or vertically imposed – or bilaterally agreed? Legal questions 5
  • 6. Algorithms Parallel use – joint use Monitoring device Co-ordination device Platforms Across platform parity agreements as commitment device (US e-books case) Direct co-ordination of sellers’ retail prices by platform (through algorithms) Digital challenges 6
  • 7. Proof of exchange of information over at least two instances can be difficult. Proof of intent/state of mind – rarely documented. Scope of proceedings can easily become very large – prioritization. Enforcement challenges 7