Any agreement between a business and one or more competitors to fix prices is illegal under the Trade Practices Act. 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.
Price fixing is a per se offence—that is, no matter what the effect is on competition in a market, price fixing agreements between competitors are illegal.
Are there any exemptions? What about joint ventures or buying groups?
Exceptions are made from s. 45A in circumstances such as joint ventures or collective buying groups, and in some circumstances, these arrangements or understandings may be exempted under the authorisation and notification processes (see Pricing publications in Related topics). Joint ventures must also be considered under s. 45—contracts, arrangements or understandings that restrict dealings or affect competition.
