What is price-fixing and how is it illegal?

Price-fixing is an illegal practice in which two or more companies agree to charge the same price for a product or service. This type of agreement artificially reduces competition and allows the participating companies to charge higher prices than would otherwise be the case. In Delaware, as in other states, price-fixing is illegal under the federal antitrust laws. Such laws are designed to protect consumers and businesses from unfair and deceptive practices that reduce competition and increase costs. Price-fixing is illegal because it restricts competition in the marketplace, leading to higher prices and fewer available products and services than would otherwise be the case. Additionally, it reduces consumer choice, thus limiting their ability to find the best deal. Under the federal antitrust laws, companies found to have participated in price-fixing can be fined up to $10 million. Furthermore, individuals found to have participated in the practice may face jail time. In Delaware, the state attorney general is responsible for investigating possible violations of antitrust law. If the office finds evidence of price-fixing, it can bring criminal or civil charges against any individual or company found to have been involved. Additionally, victims of price-fixing have the right to bring civil suits against those responsible, in order to recover damages suffered as a result of the practice.

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What is price-fixing and how is it illegal?

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