Price Fixing

An antitrust offense in which two or more competing businesses agree, rather than compete independently, to set, raise, lower or otherwise control the price of a good or service, eliminating price competition between them to the detriment of consumers who would otherwise benefit from a competitive market. Prosecuted in the United States chiefly under Section 1 of the Sherman Antitrust Act of 1890 as a per se illegal restraint of trade, meaning prosecutors need not prove the agreement actually harmed competition in a particular market, only that the agreement to fix prices existed, price fixing is generally pursued as a criminal offense by the Department of Justice's Antitrust Division against corporate executives as well as a civil matter against the companies involved. Documented historical cases include the 1990s lysine and vitamins cartel prosecutions in the United States and a series of cartel fines imposed by the European Commission against manufacturers in industries including automotive parts and shipping.