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Trust corporations and the unregulated, free market always to deliver the best solution.
The solution is to get together and agree to fix prices at rates much higher rates than a compe ive, efficient market would allow.-RG
http://marketplace.publicradio.org/d...llion-dollars/
Cargo price fixing could cost more than a billion dollars
Damn government standing the way of the free-market. Who needs it?BOB MOON: Some of Europe's biggest airlines could be hit with fines today totaling more than a billion dollars, over price fixing for air cargo. The E.U. Compe ion Commissioner is expected to hand down his decision today.
For more, let's bring in Marketplace's Stephen Beard from London. Stephen, if this is going to cost them more than a billion dollars in fines, I suspect it cost us a lot more than that. What's alleged in this case?
STEPHEN BEARD: This is the European part of a global investigation. The central allocation is that more than 20 big airlines were callooding with each other to fix fuel surcharges on their cargo operations. They were -- to put it bluntly -- ripping off their customers. Now, the U.S. is ahead of the game in dealing with this. In the U.S. total fines of more than $1.5 billion have already been levied against the airlines that fessed up to it. And four executives have been sentenced to jail.
MOON: And what action are we expecting in Europe?
BEARD: The European Commission is expected to fine 10 carriers including British Airways and Air France. It could fine them 10 percent of their total revenues -- total revenues about $10 billion -- so a total fine of about a billion is possible. But the airlines have been pleading poverty. Some of argued that given the really tough times they've been through a hefty fine might put them out of business. So the commission may go a bit easier on them. But the airlines still face a lot of pain over this. Hundreds of air freight customers are suing the airlines for damages for over charging.
MOON: Marketplace's Stephen Beard in London, thank you.
BEARD: OK Bob.
Trust corporations and the unregulated, free market always to deliver the best solution.
Which is why there is no such thing as a free market. A regulated, mostly-free market with strong protections for the consumer has proven to be effective, as long as the protections are upheld.
It's when the protections aren't upheld that things break down.
Man, you can hear the crickets from the right wing of the house...
(chirp, chirp...)
"Some of argued that given the really tough times they've been through a hefty fine might put them out of business."
Maybe they should get a US private equity fund to finance it. 25% year.
The solution is to get together and agree to fix prices at rates much higher rates than a compe ive, efficient market would allow.-RG
http://marketplace.publicradio.org/d...llion-dollars/
Cargo price fixing could cost more than a billion dollars
Damn government standing the way of the free-market. Who needs it?
How, again, is price fixing a "free" market?
Strawman much?
"Free market" being unfettered by government interference.
There is a difference between "free markets" and "efficient markets" in the economic sense of the word.
Collusions in oligopolies are a result of lack of government interference, and occur in the normal course of business, just like too much red tape and bureaucratic interference is the result of too much government involvement.
There are no few people in the US who want no government interference in business at all.
My ultimate point is that such "free markets" wouldn't end up "free", as the sarcasm suggested.
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