Price fixing is illegal under the Competition Act when multiple parties agree on price. Which option expresses this idea correctly?

• A. Price fixing is illegal if multiple parties agree on price.
• B. Price fixing is allowed with government consent.
• C. Only two companies can fix prices.
• D. It’s not related to real estate.

Answer: (A)

Pricing agreements among competitors, where several parties agree on a set price, are a form of collusion that the Competition Act treats as illegal. This practice removes price competition, harms consumers, and distorts markets, which is why it’s prohibited. The statement that captures this idea correctly notes that price fixing is illegal when multiple parties agree on a price.

Government consent does not make price fixing legal; anti-competitive agreements are generally not allowed even with such consent. Price fixing is not limited to just two companies; it can involve any number of market players who agree on price. Real estate markets are not exempt from competition law—anti-competitive conduct can occur there as well.