Quote:
Originally Posted by osnova
Because, price gouging by one player is not necessarily illegal unless there is an abuse of a dominant position. If Amazon starts raising prices, the response would be competition.
Price fixing (agreeing on pricing by competitors) is illegal always and should be punished under the law because it prevents competition from working.
|
+1
Specifically, it prevents competition among the *conspirators*.
Among the "coincidences" that launched with the Price Fix Cartel is the fact that *all* ebooks moved to exactly the same price range. And that the minimum price set by the price-fix six just happened to be a 30% increase over the Amazon pricing that so offended them.
In cartel cases, those "coincidences" are called smoking guns.
Here's an example of a busted cartel:
http://www.ft.com/intl/cms/s/0/45c6f...#axzz1p2oCOGEg
http://online.wsj.com/article/SB1000...676539124.html
Pretty much the same practices, no?
A cartel is a cartel is a cartel whether it fixes prices for oil, soap, or digital files.
Quote:
|
Price differences between detergents were generally aligned, although two brands were allowed to be slightly more expensive. The cartel also co-ordinated promotion policies.
|