The four companies that sell bulk- rate diesel to farmers in the Blaine area have consistently moved together (up or down) with the same prices. It has been suggested that they have conspired together to keep prices the same. Might they be prosecuted under the Competitions Act?

Question

Quizplus · Accepted Answer

The behaviour of the companies moving together in the same prices is evidence of an agreement, which can be inferred even if there is no proof of intent or direct evidence of a conspiracy. This is known as tacit collusion or conscious parallelism, and it violates antitrust laws because it harms competition and consumers by reducing output, raising prices, and reducing innovation. Thus, the companies could be prosecuted under the Competitions Act based on the evidence of tacit collusion.

The Four Companies That Sell Bulk- Rate Diesel to Farmers