Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition

This paper identifies three classes of public announcements which facilitate coordination among competitors to restrict competition. Nine episodes of collusion are investigated to understand how this method of communication operates and is effective. An assessment of the conduct of competition authorities and courts in these cases reveals inadequate enforcement. Recommendations are offered for how to more aggressively enforce antitrust law when agreements are reached through public announcements.