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Example 2 Situation: All of the 10 producers of apple juice in Example 1 source apples from suppliers involved in a price fixing cartel. The members of the cartel claim that any overcharge is passed on to the indirect purchasers. Analysis: The producers of apple juice are similarly exposed to the overcharge and the market is characterised as competitive. Since all of the producers are faced with the overcharge, one firm will not have a competitive disadvantage compared to the other firms. It is therefore more likely that each apple juice producer to a large extent will pass on the overcharge, in contrast to the case detailed in Example 1 (where the overcharge is firm-specific). As an illustration, in a perfectly competitive market, the price equals marginal costs and a rise in the cost of an input will therefore directly lead to an equal rise in the price.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.