In 2055, a new alternative for Lithium was discovered, Frinkonium could be used for electric vehicle

batteries. Government alone has the exclusive mining and extraction control rights over the metal.
It must be processed immediately and cannot be kept in its ore for long periods of time. Its price is
dependent many variables like quality and fitness for use.

Lithium put strain on the environment and the government levied taxes for the use of same. Thus,
EV manufactures are the largest bidders for Frinkonium. The bidding process is tricky as hundred
variables are to be calculated to arrive at the price on a real time basis.

In September 2055, the government announced a bid for the first lot of extracted Frinkonium
weighing 12,000 metric tonnes. The bid was a real time virtual bid and the bidders has only 2 hours
to determine the price of the bid depending on factors that could be discovered only after
extraction.

Aperture announced a new algorithm called ‘Bid AI’ to help bidders calculate the accurate real time
price. The licences for Bid AI were granted to top 8 manufacturers: i. FMI, ii. Americar, iii.
Brookwood, iv. Bolger, v. Battenberger, vi. Cromwell, vii. Dillon, viii. Maxwell.

The night before the meeting the government hosted a party to celebrate the success of extraction
of Frinkonium. The CEOs of the five companies [Maxwell, Cromwell, Dillon, Brookwood and
Americar] that got the license of Bid AI, had a discussion on the quantity of the Frinkonium that they
aimed to bid for the auction. The disclosed quantities were overstated with the intention to mislead
each other.

This discussion was overheard Austin Powers and he followed the virtual bid next day via an illegal
stream. It was noted by Austin that the five companies that discussed the quantities of their bid won
the bid. There was also a similarity in the price that was bid by them. Austin with consultation from
his law professor, filed an information with the Baraq Competition Authority reporting that the EV
companies had colluded among each other by: Discussing quantities; and using the same bid-assist
algorithm, which led to tacit collusion during the bidding process.

They implored to the BCA stating to:

i. Form prima facie view that the five companies had cartelised during their auction and
violated section 3(3) of the Baraq Competition Act 2002.
ii. Conduct and investigation into the 5 companies
iii. Reconduct the first auction

In the interim, the BCA directed each of the five EV companies to disclose their bidding metrics
upfront to a monitoring agency appointed by them and to obtain approval from the agency before
submitting their bids. This requirement was extended for all future bids or auctions of Frinkonium
for a period of three years or until five alternative bid-assist algorithms emerged in the market.

After receiving the information, the BCA conducted a hearing and directed the parties to file written
submissions addressing:

i. Whether discussions on quantities, despite different bid amounts, amounted to collusion?

ii. Whether using the same algorithm to determine prices based on common factors amounted
to tacit collusion?
iii. Whether the remedies sought by Power and Mason adequately addressed the potential
harm arising from the alleged cartel, or if they exceeded the scope of the Competition Act,
2002?