Effects of Corporate Cartelization

Abstract

The purpose of this chapter is to present the results of the documentary analysis of the case of the toilet paper cartel in Colombia and the effects of corporate cartelization. The results indicate that the conduct of the companies involved in the toilet paper cartel in Colombia was sanctioned for alleged violation of free competition and consumer rights. The cartel caused consumers to reallocate their income in order to access the cartelized product, leaving them to spend that money on other products and/or services, which also affected other companies in the market. Finally, any business cartel is a serious distortion of free competition. In turn, the agreements put an end to the competitive process and break the normal functioning of the market, which translates into harm to consumers and the economy in general.