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Price fixing 

What is price fixing?

A price fixing occurs when competing businesses secretly and unlawfully agree on pricing. Price fixing agreements may include:

  • Charging the same price for products or services
  • Agreeing on discounts, margins, or price differentials
  • Coordinating price increases or setting minimum prices

A price – fixing agreement does not have to be written down in order to be unlawful.  Informal ‘gentleman’s agreements’ or ‘understandings’ between competitors are also prohibited.

If you suspect a case of potential price fixing, then you should report it to the CCPC. If you prefer, you can report anonymously. 

 

 

How can I spot price fixing?

Businesses are generally allowed to match their competitors’ prices, provided the decision is made independently. This makes price fixing difficult to spot! Any sign that a price decision was not made independently is a warning sign of price fixing, for example:


  • Competitors increasing their prices at the same time despite no increase in their costs
  • Competitors using the same formulas to calculate their prices
  • Competitors using similar phrases when announcing price changes

How is price fixing harmful?

Rather than competing to beat each other’s prices or innovating to improve their goods and services, price fixers unlawfully agree to keep prices high at the expense of the buyer. Consumers, businesses, and even the State can be victims of price fixing.

What should you do if you are involved in price fixing?

Consider applying for immunity under the CCPC and DPP’s Cartel Immunity Programme (CIP) or leniency under the CCPC’s Administrative Leniency Policy (ALP). The CIP and ALP encourage self-reporting of cartel conduct in return for immunity and/or leniency.

What are the penalties for price fixing in Ireland?

Under the Competition Act 2002, price fixing can result in:

  • criminal convictions with up to 10 years imprisonment
  • fines of up to €50 million or 20% of turnover for individuals or undertakings
  • director disqualification for five years

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