What practice is forbidden under competition law related to pricing?

Fixing prices among competitors is a practice that is explicitly forbidden under competition law because it undermines the principles of a free and competitive market. When businesses agree to set prices at a certain level, they eliminate price competition, which can lead to higher prices for consumers and reduced choices in the market. This collusion can stifle innovation and create barriers for new entrants, ultimately harming the overall economy.

Competition law aims to promote fair competition and protect consumers by prohibiting anti-competitive practices, including price-fixing. It is essential for companies to set their prices independently to ensure market dynamics are based on supply and demand rather than artificial constraints imposed by competitors. The prohibition of price-fixing is fundamental to maintaining a competitive environment where businesses must strive to offer better prices and services to attract customers.