A report on Price fixing

Does Price Fixing Destroy Liberty? (1920) by George Howard Earle Jr.

Anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand.

- Price fixing
Does Price Fixing Destroy Liberty? (1920) by George Howard Earle Jr.

22 related topics with Alpha

Overall

Headquarters of the Rhenish-Westphalian Coal Syndicate, Germany (at times the best known cartel in the world), around 1910

Cartel

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Group of independent market participants who collude with each other in order to improve their profits and dominate the market.

Group of independent market participants who collude with each other in order to improve their profits and dominate the market.

Headquarters of the Rhenish-Westphalian Coal Syndicate, Germany (at times the best known cartel in the world), around 1910
The printing equipment company American Type Founders (ATF) explicitly states in its 1923 manual that its goal is to "discourage unhealthy competition" in the printing industry.

Cartel behavior includes price fixing, bid rigging, and reductions in output.

Judge Coke in the 17th century thought that general restraints on trade were unreasonable.

Competition law

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Field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies.

Field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies.

Judge Coke in the 17th century thought that general restraints on trade were unreasonable.
Elizabeth I assured monopolies would not be abused in the early era of globalization.
Senatorial Round House by Thomas Nast, 1886
There is considerable controversy among WTO members, in green, whether competition law should form part of the agreements
John Stuart Mill believed the restraint of trade doctrine was justified to preserve liberty and competition.
Paul Samuelson, author of the 20th century's most successful economics text, combined mathematical models and Keynesian macroeconomic intervention. He advocated the general success of the market but backed the American government's antitrust policies.
Robert Bork
Scottish Enlightenment philosopher Adam Smith was an early enemy of cartels.
The economist's depiction of deadweight loss to efficiency that monopolies cause

Today, the Treaty of Lisbon prohibits anti-competitive agreements in Article 101(1), including price fixing.

"I Like a Little Competition"—J. P. Morgan by Art Young. Cartoon relating to the answer J. P. Morgan gave when asked whether he disliked competition at the Pujo Committee.

Anti-competitive practices

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Anti-competitive practices are business or government practices that prevent or reduce competition in a market.

Anti-competitive practices are business or government practices that prevent or reduce competition in a market.

"I Like a Little Competition"—J. P. Morgan by Art Young. Cartoon relating to the answer J. P. Morgan gave when asked whether he disliked competition at the Pujo Committee.

Price fixing, where companies collude to set prices, effectively dismantling the free market by not engaging in competition with each other. In 2018, travel agency giant, Flight Centre was fined $12.5 million for encouraging a collusive price fixing plan between 3 international airlines from between 2005 and 2009

Sony Music

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American multinational music company.

American multinational music company.

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In restitution for price fixing, they agreed to pay a $67.4 million fine and distribute $75.7 million in CDs to public and non-profit groups but admitted no wrongdoing.

Bertelsmann Music Group

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Division of a German media company Bertelsmann before its completion of sale of the majority of its assets to Sony Corporation of America on 1 October 2008.

Division of a German media company Bertelsmann before its completion of sale of the majority of its assets to Sony Corporation of America on 1 October 2008.

In restitution for price fixing they agreed to pay a $67.4 million fine and distribute $75.7 million in CDs to public and non-profit groups but admitted no wrongdoing.

Warner Music Group

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American multinational entertainment and record label conglomerate headquartered in New York City.

American multinational entertainment and record label conglomerate headquartered in New York City.

Logo of WEA International
Edgar Bronfman Jr., scion of the Canadian-based Bronfman family, took control of WMG in 2004.
Leonard Blavatnik, founder of Access Industries, purchased WMG in 2011.

In restitution for price fixing they agreed to pay a $67.4 million fine and distribute $75.7 million in CDs to public and non-profit groups but admitted no wrongdoing.

Future collusive profits

Collusion

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Deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right.

Deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading or defrauding others of their legal right.

Future collusive profits
Set higher prices

Uniform prices and setting of an unjustified high or an unjustified low price

Lysine price-fixing conspiracy

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Organized effort during the mid-1990s to raise the price of the animal feed additive lysine.

Organized effort during the mid-1990s to raise the price of the animal feed additive lysine.

A criminal investigation resulted in fines and three-year prison sentences for three executives of ADM who colluded with the other companies to fix prices.

Bid rigging

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Fraudulent scheme in procurement auctions resulting in non-competitive bids and can be performed by corrupt officials, by firms in an orchestrated act of collusion, or between officials and firms.

Fraudulent scheme in procurement auctions resulting in non-competitive bids and can be performed by corrupt officials, by firms in an orchestrated act of collusion, or between officials and firms.

It is a form of price fixing and market allocation, often practiced where contracts are determined by a call for bids, for example in the case of government construction contracts.

EMI

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British transnational conglomerate founded in March 1931 in London.

British transnational conglomerate founded in March 1931 in London.

EMI's former building in London. The building is now owned by Warner Music UK.
Trade ad of congratulations to the Beatles for their 1964 Grammys.
Gold and silver discs issued by EMI in 1982 for Queen’s Greatest Hits.
Emitron television camera
H2S radar display set
First commercially available CT scanner made by EMI
EMI photomultiplier tubes
EMI tape recorder

In restitution for price fixing they agreed to pay a $67.4 million fine and distribute $75.7 million in CDs to public and non-profit groups but admitted no wrongdoing.