What is price-fixing and how is it illegal?

Price-fixing is an illegal type of anti-competitive behavior under antitrust law. It occurs when two or more businesses agree to set prices for their products or services at a certain level, rather than competing with each other for the lowest prices. This agreement between businesses to fix prices artificially drives up prices for consumers and prevents competition. In California, price-fixing is particularly illegal under Business and Professions Code 16720, as well as Section 5 of the Clayton Act and Section 1 of the Sherman Act. All of these statutes make it against the law for two or more businesses to come together and agree to artificially raise prices. Price-fixing can also be illegal in California if a business has a monopoly and uses its position to set prices. This type of behavior is known as a monopoly price-fixing and is illegal under California law. In addition, price-fixing can also be illegal if a business takes advantage of its position in the market. For example, if a business is the only provider of a certain type of product or service, it could use this power to inflate prices without competition. Overall, price-fixing is illegal under antitrust law in California, and businesses can be fined or face other legal action for engaging in such practices.

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What is price-fixing and how is it illegal?

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