Question

2. According to an investigation by the Competition Commission of Singapore (CCS), 11 air freight forwarding companies and their Singapore subsidiaries and affiliates were involved in a cartel. They colluded to fix certain fees and surcharges, and also exchanged price information and customer details in relation to the provision of air freight forwarding services for shipments from Japan to Singapore.

a. What could have been the factors contributing to them forming the cartel and the cartel’s success?

b. Why might the cartel have broken up even without the intervention of the CCS?

Answer 1