m5d1 2 - The big three chocolate makers are accused of colluding in price Allegations that Nestl the maker of chocolate bars such as Kit Kat Coffee

m5d1 2 - The big three chocolate makers are accused of...

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The big three chocolate makers are accused of colluding in price. “Allegations that Nestlé – the maker of chocolate bars such as Kit Kat, Coffee Crisp and Big Turk – colluded with its major competitors in Canada to coordinate price increases ranging from 4 per cent to 8 per cent were first revealed in 2007, after Competition Bureau investigators raided the Canadian offices of Nestlé, Hershey, Mars and IHTWAL.”(gray, ) “The chocolate firms, which command 75% of the US market, were liable for $727m in damages for alleged conspiracy to raise chocolate prices in the US between 2002 and 2007.”( US chocolate price fixing suit against Mars, Nestlé and Hershey melts, Nieburg 2014) The three firms would be considered an oligopoly. In an oligopoly firms don’t act independently without consequences. Firms must be careful to watch their rivals to measure what they might do. Managers must consider wat the other companies will do.

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