The worst antitrust offenses are cartel violations, price fixing, bid rigging & customer allocation. Price fixing is when 2 plus competing sellers agree on what prices to charge, ex: by agreeing that they will increase prices a certain amount or that they won't sell below a certain price. Bid rigging is when 2 plus firms agree to bid in such a way that a designated firm submits the winning bid, typ for local, state or fed gov contracts.

Customer-allocation agreements involve some arrangement between competitors to split up customers, such as by geographic area, to reduce or eliminate competition. Such price-fixing, bid-rigging & customer-allocation agreements, unlike joint research agreements for ex, provide no plausible offsetting benefits to consumers. These agreements are generally secret, & the participants mislead & defraud customers by continuing to hold themselves out as competitors despite their agreement not to compete.
Price fixing, bid rigging & customer allocation harm consumers & taxpayers by causing them to pay more for products & services & by depriving them of other byproducts of true competition. Nor is there usually any question in the minds of violators that their conduct is unlawful. Such practices raise the price of a product or service by more than 10 %, sometimes much more, & that Amer consumers & taxpayers pour billions of $ each yr into the pockets of cartel members. People who take consumer & taxpayer $ this way are thieves.
Minneapolis Packaged-Ice Company Executives Plead Guilty to Customer Allocation Conspiracy involving the allocating customers
by loverocn October 21, 2009

Free Daily Email

Type your email address below to get our free Urban Word of the Day every morning!

Emails are sent from daily@urbandictionary.com. We'll never spam you.

×