Agreements between competing businesses to fix prices are illegal under the Competition and Consumer Act 2010. Price fixing agreements do not have to be in writing: they can be a 'wink and a nod', made over a drink in the local pub, at an association meeting or at a social occasion.
The important point is not how the agreement was made or even how effective it is, but that competitors are working out their prices collectively and not individually.
It is illegal for a business to enter into or give effect to such agreements.
Are there any exemptions? What about joint ventures or buying groups?
Exceptions to the prohibitions on price fixing exist for certain joint ventures for joint production or supply of goods or services and for certain agreements for the collective acquisition of goods or services. Agreements between related companies are also exempted. The joint venture exception is complex, and legal advice should be sought by anyone considering a joint venture that may otherwise breach the cartel provisions.
Relevant sections of the Competition and Consumer Act
