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Price fixing

Any agreement between competitors regarding price is considered price fixing and is illegal in many countries.

Methods of price fixing can include,

American law is very specific that price fixing is only illegal if it happens via communication and specific agreement between firms. It is not illegal for firms to copy the price moves of a defacto market leader as is the case with prices of cereals and cigarettes. Critics say that this rule makes the government not able to stop the majority of price fixing which harms consumers.

Bid rigging is sometimes regarded as price fixing.

Price fixing is often practiced internationally. Examples of price fixing include oil whose price is controlled by OPEC. Also international airline tickets have prices fixed by agreement with the IATA, a practice for which there is a specific exception in antitrust law.

There are persistent allegations that the record industry engages in price fixing as a standard business practice. Athough illegal, one example of the possible reasoning runs as follows:

See also: Antitrust, cartel, monopoly, oligopoly, Net Book Agreement

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