Is collusion or price fixing legal in the United States?

Collusion and price fixing are illegal in the United States as they violate anti-trust laws designed to promote fair competition and protect consumers. These practices involve agreements between businesses that can lead to elevated prices, reduced competition, and limited choices for consumers. The Sherman Act of 1890 is a key legislation that prohibits such anti-competitive agreements, ensuring that markets operate freely without manipulation from colluding firms.

Any attempts by companies to set prices or output levels in a coordinated manner undermine the principles of a free market economy, which thrives on competition. By preventing collusion and price fixing, the law seeks to foster an environment where businesses compete based on quality, service, and price, ultimately benefiting consumers through better choices and lower prices. This fundamental aspect of U.S. economic policy underscores why collusion and price fixing are deemed unlawful.