What is vertical maximum price fixing?
What is vertical maximum price fixing?
The decision makes vertical maximum price fixing — an attempt by a manufacturer, for example, to limit its distributors profits in order to strengthen its product position as against other brands — subject to evaluation under the rule of reason “like the majority of commercial arrangements subject to the antitrust …
What law deals with price fixing?
The Sherman Act prohibits any agreement among competitors to fix prices, rig bids, or engage in other anticompetitive activity. Criminal prosecution of Sherman Act violations is the responsibility of the Antitrust Division of the United States Department of Justice.
Why is vertical price fixing illegal?
For almost 100 years vertical minimum price fixing was per se illegal under Federal antitrust law. Vertical minimum price fixing occurs when a manufacturer tells its dealer or distributor the minimum price at which it must resell the goods.
Is price fixing ever legal?
Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. A plain agreement among competitors to fix prices is almost always illegal, whether prices are fixed at a minimum, maximum, or within some range. …
When is price fixing illegal in the United States?
Illegal price fixing occurs whenever two or more competitors agree to take actions that have the effect of raising, lowering or stabilizing the price of any product or service without any legitimate justification.
How does antitrust law apply to price fixing?
Guide to Antitrust Laws. Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. Generally, the antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor.
What do you need to know about price fixing?
Price Fixing. Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. Generally, the antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor.
What did the FTC say about price fixing?
The FTC said that the optometrists’ agreement was illegal price fixing, and that its leaders had organized an effort to make sure other optometrists knew about and complied with the agreement.