Agreed price setting (Horizontal price fixing)
Price setting is an agreement between competitors, to increase, nail down or in any form, maintain the price in which they sell their products or services.
It is not necessary for the competitors to agree selling exactly for the same price or that every competitor in a particular sector is part of a conspiracy.
The agreed price setting can take many forms in every agreement which restrains the competition price, and violates the Law.
Other forms of illegal price setting agreements are:
- Establishment and persistence in discount policies by the competitors.
- Common maintenance of stable pricing.
- Simultaneous cancellation or decrease of discounts by the competitors .
- Retention of specific prices in different types, sizes or quantities of products which are produced or traded by the competitors.
- Insistence on a minimum price or charging catalogue.
- Same credit terms by competitors.
- Avoidance of price advertising.
Attention should be given to the following practices:
If you are a consumer or small/ mid-size businessman
- Pay attention to competitors who always announce price increases simultaneously for the same ammount
or follow alternating price increases or follow their turn in price increases that are in progress.
- Pay attention to competitors who decrease or abolish discounts about the same time.
- Generally,be alert in situations ,when all prices seem to be uniform and the suppliers refuse to negotiate them.
All the above cases are causing damage to your interests.
This is why you must come forward with antitrust complaints.
1a.Collusive Tendering.(Bid Rigging)
One of the most common law violations in competition is the practice of collusive tendering.In simlpe words, collusive tendering
(agreed offer) practice is the swindling that concerns an agreement between competitors who submit tenders for the supply
of goods, services, the undertaking of big projects etc., with the winner being pre-determined.
The agreed tender practices appear when a buyer is looking for tenders in order to buy goods or services.
The competitors agree in advance which tender would prevail.
The buyer who depends on the competition between the companies that submit tenders, in order to get the lowest competitive price,
finally gets the lowest tender which is higher than the one a real competitive market would have offered to him.
There are four basic forms on which all agreed practice conspiracies are based on.
-Supression of tenders.In this form one or more competitors agree not to give offers or withdraw their offer,
so the chosen one would be the declared winner of the competition.In return they receive compensation, some contracts for supplies
or a commission on services provided.
-Complimentary tenders.In this type, the competitors-conspirators, submit offers as gifts which intentionally are higher or do not abide
by the specifications on the competition so they can lose the commission of supplies or services.These friendly-offers are planned
so as to give the false feeling of competition.
-Circular tender alternation.In these cases all the competitors-conspirators submit tenders, but upon agreement they each take turns
as winners of specific competitions or series of competitions, where there is profit sharing for all.
-Distribution of customers in the market.In this form, the conspirators upon agreement distribute among themselves the customers
in geographical areas in which they submit tenders.
- If you are a Public Sector Officer who handles the tenders for supply of goods or services to your Sector,
- If you are an Executive in a State controlled Organization, responsible for the supply of goods or services to your Organization,
Because you are a tax- payer, you, along with all of us, will pay the high cost.
- If you are a businessman who is looking for tenders in purchasing goods or services,
Because your business is also suffering financial weakenes under the above conditions.
- If you are simply a tax- payer,
- Because you, along with all of us, will pay the cost.
IF any of the above practices come to your attention in your professional or financial enviroment,
DO NOT HESITATE TO COME FORWARD WITH YOUR ANTITRUST COMPLAINT |