Vertical Price Fixing

Vertical price fixing occurs when a manufacturer and its retailers agree on the resale prices of a product, setting minimum or maximum prices at which the product can be sold. This collaborative control aims to maintain consistent pricing across different stores, protect brand image, or support retailer margins. However, such agreements can reduce price competition, limit consumer choices, and may violate antitrust laws designed to promote fair competition. In many jurisdictions, vertical price fixing is considered illegal unless proven to have legitimate business justifications.