Price Fixing Among Competitors

Antitrust laws state that there should be the preservation and encouragement of competition among competitors in the marketplace of commerce. The use of horizontal restraints has an effect on competition between companies. The activities of price fixing, group boycotts and the sharing of disseminated information at trade associations have the effect of an undue restraint of trade which will hamper competition. Price fixing agreements are one of the main practices of competitors to influence the prices and cause sharp rises in profits and costs to the consumer.

The following questions have been addressed in this article:

Would price fixing be permitted if the market would become more competitive?
Would price fixing be found by the conduct of businesses comparing prices in a trade association?


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