What is per se rule?
A type of antitrust analysis used to determine the legality of agreements (written or oral) between competitors. Under the per se rule, certain categories of agreements are presumed to violate antitrust laws, regardless of other factors such as business purpose or competitive benefits.
What are the per se violations of antitrust law?
Business practices considered per se illegal under antitrust laws include: (a) horizontal agreements to fix prices, (b) horizontal market allocation agreements, (c) bid rigging among competitors; (d) certain horizontal group boycotts by competitors; and (e) sometimes tying arrangements.
Is price fixing per se illegal?
All vertical agreements are analyzed under the Rule of Reason. Horizontal agreements with the effect of raising, depressing, fixing, pegging, or stabilizing the price of a commodity in interstate or foreign commerce (price-fixing agreements) are illegal per se.
What is per se evidence?
The term “illegal per se,” refers to an act that is illegal “in itself,” or which is inherently illegal. The act is considered egregious in and of itself, and does not require any additional evidence, or proof of criminal intent. By simply committing an act that is illegal per se, the perpetrator is liable for the act.
What is the rule of reason and examples?
For example, a manufacturer may restrict supply of a product in different geographic markets only to existing retailers so that they earn higher profits and have an incentive to advertise the product and provide better service to customers.
What is rule of per se under MRTP?
Article 38 and 38 of the constitution of India, MRTP act of 1969 and Hazari committee report of 1955 led to the formation of competition law in India. there are 2 main rules in the competition law i.e. RULE OF REASON AND PER SE RULE which decides whether the company is anticompetitive in nature or not.
What is per se violation?
“Per se” means “in itself or “by itself”. Thus, if an act is categorized as illegal per se, it means that it does not require any additional proof or surrounding circumstances, such as intent or a criminal mindset. Merely committing the act would make a person liable for the violation.
Is predatory pricing a per se violation?
What Is Predatory Pricing? Predatory pricing is the illegal act of setting prices low to attempt to eliminate the competition. Predatory pricing violates antitrust laws, as it makes markets more vulnerable to a monopoly.
What is horizontal price fixing?
Horizontal price fixing involves competitors that agree to raise, lower or stabilize prices. For example, when two competing fast-food chains that sell hamburgers agree on the retail price of cheeseburgers, that horizontal agreement is illegal under antitrust laws.
How are price fixing schemes usually worked out?
Price-fixing schemes are often worked out in secret and can be hard to uncover, but an agreement can be discovered from “circumstantial” evidence.
Is it illegal for competitors to fix prices?
When competitors agree to restrict competition, the result is often higher prices. Accordingly, price fixing is a major concern of government antitrust enforcement. A plain agreement among competitors to fix prices is almost always illegal, whether prices are fixed at a minimum, maximum, or within some range.
What does it mean to fix a price?
Price Fixing. Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms.
What is the purpose of price fixing in the SCA?
In other words, price fixing (according to the SCA) is a means to avoid, through collusion, the effects of market competition on prices.