What is Bid-rigging?
Bid-rigging occurs when competitors agree who will submit the winning bid. This can take several forms:
- Bid Suppression: One of more competitors “get out of the way” for the chosen winner
- Complementary Bidding: Bids come in that are obviously too high or are riddled with unrealistic special conditions
- Bid Rotation: A game of tag, bid-rigging style
- Market Division: Competitors take certain customers or geographic areas as their own and agree to stay away from others
What is Market Allocation?
Market Allocation is when competitors agree to divide up a market between competitors and not compete in those areas.
The markets can be divided up in a variety of ways, including:
- By geographic area: Company A agrees to take customers in the northern part of the state, and Company B takes customers in the southern part;
- By customer type: Company A will only bid on food contracts for colleges, and Company B will only bid on food contracts for primary and secondary public school systems; or
- By product: Company A will only bid on toner, and Company B will only bid on copier paper.
What is Price Fixing?
Price fixing occurs when competitors agree on a price or other terms of sale for their products or services. Please send any questions or additional documents or supporting materials to:
Antitrust Principal Investigator
Office of the Attorney General
30 E. Broad St., 26th Floor
Phone: 614-466-4328
Fax: 614-995-0266