bid rigging

Bid rigging is a form of collusion where competitors agree in advance on the terms of a bid, undermining fair competition. This often occurs in auctions or contract bidding processes, where companies coordinate to fix prices or determine the winning bidder among themselves. As a result, the contracting entity may pay more than necessary, while the rigging parties avoid true competition. Bid rigging is illegal in many jurisdictions as it artificially inflates prices and erodes trust in procurement systems, ultimately harming consumers and the economy.