The strength of weak signals Exofficio cartel investigations
- Slides: 15
The strength of weak signals Ex-officio cartel investigations in the banking sector in Italy Rosella Creatini and Renato Ferrandi Italian Competition Authority Cartel Working Group SG 1 Teleconference on Ex Officio Cartel Investigations October 14, 2014
EX-OFFICIO INVESTIGATION S News Market intelligence triggered by the agency SUBSTANTIATED COMPLAINTS LENIENCY APPLICATIONS prompted by the market
In the banking and insurance sectors You can hardly rely on leniency applications O Oligopolistic markets, big companies with long experience O Increasing concentration (consolidation process and new requirements) O Strong interaction among competitors, also through trade associations Or substantiated complaints by consumers O Highly technical sectors
EX-OFFICIO INVESTIGATION S News Market intelligence SUBSTANTIATED COMPLAINTS LENIENCY APPLICATIONS
EX-OFFICIO INVESTIGATION S News Market intelligence What is there in between? SUBSTANTIATED COMPLAINTS LENIENCY APPLICATIONS
EX-OFFICIO INVESTIGATION S News Market intelligence DETECTION TOOLS Market studies Circumscribed complaints Requests for information SUBSTANTIATED COMPLAINTS LENIENCY APPLICATIONS
Market studies O Provide a better understanding of the sector O Help to identify anomalies and competition concerns O Raise consumer and public administration awareness and attention
Circumscribed complaints O Each consumer has a limited view of the market situation O A public administration may point out suspicious outcomes of one or more tenders only … but several complaints may draw a pattern
Requests for information O Expand circumscribed complaints O In space (other suspicious tenders in different territories) O In time (evolution over a certain period) … to draw the pattern
Market studies (examples) O Costs of bank accounts and services O Price increases, mainly focused on old clients of big banks O Low churn rate, due to poor transparency, bound with other bank services, time and cost of account closure
Market studies (examples) O Car insurance O High and fast-growing insurance premiums O Low availability of quote comparison websites and multi-firm agents
Cases O General cashier services for INAIL (2008) O Complaint from public administration INAIL on suspicious tender for provision of general cashier services O One only bid by the four biggest banks in a temporary grouping O RFI about tenders over the years O Temporary grouping already in place since 1996 O 3 failed tenders with no bids, successful tender when one only bid was allowed
O Dawn raids O Relevant market: cashier services for INAIL O Information exchange about the tenders, economic model showing no need for temporary grouping O Unique and continuous agreement aimed at sharing the market
Cases O Healthcare liability coverage in Campania (2011) O Following a market study highlighting increasing prices for health insurance… O Local health unit complained about anomalous increase in price for insurance services O RFIs to other 8 local health units about tenders over the past 10 years
O Dawn raids O 3 insurance companies coordinated their bids for 18 tenders from 2003 to 2008 O Contacts and information exchange, sharing of contracts and lots, co-insurance agreements
Communicative signals and informative signals
What is informative signals
Communicative signals and informative signals
Difference between strong and weak acids
Weak acid and weak base reaction
Strong acids
You was my strength when i was weak
Granovetter strength of weak ties
Granovetter strength of weak ties
Your my strength when i am weak
Yield and tensile strength
Percentage strength formula
Composition of half strength darrow's solution
What is ratio strength
Conclusiones del bullying
Qq cartel
