Phoebus cartel
1925–1939 lightbulb cartel
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Key Takeaways
- The Phoebus cartel was an international cartel that controlled the manufacture and sale of incandescent light bulbs in much of Europe and North America between 1925 and 1939.
- Corporations based in Europe and the United States, including Tungsram, Osram, General Electric, Associated Electrical Industries, and Philips, incorporated the cartel on 15 January 1925 in Geneva, as Phœbus S.
- Although the group had intended the cartel to last for thirty years (1925 to 1955), it ceased operations in 1939 with the outbreak of World War II.
- History Osram, Philips, Tungsram, Tokyo Electric, Associated Electrical Industries, ELIN, Compagnie des Lampes, International General Electric, and the GE Overseas Group created and joined the Phoebus cartel, holding shares in the Swiss corporation proportional to their lamp sales.
- When Philips and other manufacturers entered the American market, General Electric reacted by setting up the "International General Electric Company" in Paris.
The Phoebus cartel was an international cartel that controlled the manufacture and sale of incandescent light bulbs in much of Europe and North America between 1925 and 1939. The cartel took over market territories and lowered the useful life of such bulbs, which is commonly cited as an example of planned obsolescence.
Corporations based in Europe and the United States, including Tungsram, Osram, General Electric, Associated Electrical Industries, and Philips, incorporated the cartel on 15 January 1925 in Geneva, as Phœbus S.A. Compagnie Industrielle pour le Développement de l'Éclairage (French for "Phoebus plc Industrial Company for the Development of Lighting"). Although the group had intended the cartel to last for thirty years (1925 to 1955), it ceased operations in 1939 with the outbreak of World War II.
Following its dissolution, light bulbs continued to be sold at the 1,000-hour life standardized by the cartel.
History
Osram, Philips, Tungsram, Tokyo Electric, Associated Electrical Industries, ELIN, Compagnie des Lampes, International General Electric, and the GE Overseas Group created and joined the Phoebus cartel, holding shares in the Swiss corporation proportional to their lamp sales.
Osram founded a precursor organisation in 1921, the Internationale Glühlampen Preisvereinigung. When Philips and other manufacturers entered the American market, General Electric reacted by setting up the "International General Electric Company" in Paris. Both organisations co-ordinated the trading of patents and market penetration. Increasing international competition led to negotiations among all the major companies to control and restrict their respective activities in order not to interfere in each other's spheres.
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