Business is subject to cut-throat competition and margins are tight. Except, that is, when competitors are tempted to agree on prices or the division of customers so that profits are maintained or expanded. Either way, this is a price fixing arrangement or cartel and is illegal under the Commerce Act 1986.
This Paper sets out:
- the prohibition against price fixing in the Commerce Act;
- the enforcement actions available to the Commerce Commission, with examples of both high-level and low-level enforcement actions;
- some practical advice on how to avoid price-fixing.