Re-sit main paper writing assignment: Occupant safety systems supplied to Japanese car manufacturers
In November 2017, the European Commission imposed fines totaling € 34 million on five suppliers of car seatbelts, airbags and steering wheels, for participating in one or more of four cartels during 2004- 2010. This decision is part of a series of major investigations into cartels in the automotive parts sector: in previous years, the Commission had already fined suppliers of automotive bearings, wire harnesses, flexible foam, parking heaters, alternators and starters, and thermal systems (as you may remember from the original main paper topic). Concerning the case at hand, the responsible commissioner, Margrethe Vestager, said: “Seatbelts and airbags protect lives every day and are essential in all cars in the EU.
The five suppliers fined today colluded to maximise their profits from the sale of these components. This may have raised the costs of these car parts for a number of manufacturers selling cars in Europe, potentially affecting consumers. We do not accept cartels that affect the European consumers, even if the cartel is organised outside Europe.” Your writing assignment: 1. Provide a concise and informative description of the cartel case at hand. 2. Use your course knowledge about economic efficiency and welfare to explain, why the European Commission seeks to disrupt cartels and prevent their formation. You must provide a graphical analysis accompanied by a verbal explanation of the relevant economic concepts.
3. The single Case AT.39881 at hand actually covers four distinct cartels (“infringements”), which are addressed separately in the Commission’s rulings. Discuss whether, from the perspective of economic efficiency and welfare, there are meaningful differences between these four cartels. Basic resources: European Commission (November 2017). Antitrust: Commission fines five car safety equipment suppliers €34 million in cartel settlement. Retrieved from http://europa.eu/rapid/press-release_IP-17-4844_en.htm European Commission (November 2017). Nonconfidential version of the decision in CASE AT.39881 – Occupant safety systems supplied to Japanese car manufacturers. Retrieved from http://ec.europa.eu/competition/antitrust/cases/dec_docs/39881/39881_2123_5.pdf
PAPER CRITERIA ON NEXT PAGE Structure: clear ‘purpose statement’ and outline; ensure that the organization and structure of your paper follows logically from your purpose statement. Paper to be structured in line with Guide to Academic Writing Manual and Course Materials Content: relevant economic aspects organized logically and coherently; minimum of 3 academic papers (not newspaper articles or web forums/blogs) should be reviewed in the discussion of the topic.
Language: accurate grammar; appropriate style. Citations and references: applied appropriately (NB. Minimum 5 academic references, inclusive of the 2 papers mentioned in content above). APA 6 standards to be adhered to. Word count: 1800 – 2200. Deadline: Friday, April 12th, 2019, 10.00 Important: all elements must be passed to achieve a passing grade Content and Language (Structure/ Accuracy/ Formatting/ Citing & Referencing
