What is price fixing?

Price fixing refers to the practice where competitors in a market come together to set prices at a certain level rather than allowing competition to determine prices naturally. This form of collusion can lead to artificially inflated prices, which is detrimental to consumers and violates antitrust laws.

When companies agree on pricing, they eliminate the competitive pressures that typically keep prices in check, resulting in higher costs for consumers. Price fixing can take various forms, including agreements to set minimum or maximum prices, or to coordinate pricing strategies.

Understanding this concept is crucial within the context of retail and overall market dynamics, as it impacts not only consumer behavior but also market integrity and fair competition among businesses.