PRICE FIXING

An agreement between competitors to fix price is an example of anti-competitive market behaviour. Accordingly, price fixing agreements between competitors are absolutely prohibited under the Act because they are deemed to have the purpose, effect or likely effect of substantially lessening competition. Price fixing agreements are defined broadly to include contracts, arrangements or understandings that have the purpose or effect or likely effect of fixing, controlling or maintaining the price for goods or services or any discount, allowance, rebate or credit. There are however, some exceptions to price fixing prohibition.