Price Fixing is a gross violation of antitrust legislation involving an agreement between competitors to fix, raise, or maintain prices for a product or service. In Georgia, this act violates the Law on "Competition" and may lead to both severe financial penalties (up to 5% of turnover) and criminal liability (Article 195-1). Charges may relate to cartel deals in pharmaceutical, fuel, food, or other strategic markets. Often, companies do not realize that exchanging pricing information with competitors can already be considered an illegal act.
Defense in such cases requires economic analysis skills and deep knowledge of competition law. The lawyer's goal is to prove that the price change was an objective market reality and not the result of an agreement.
What does the Price Fixing Defense service cover?
Specialists on our platform offer:
- Economic expertise: Market analysis to confirm that parallel price movements were caused by objective factors (e.g., raw material costs, exchange rates) and not collusion.
- Representation at the Competition Agency: Protecting company interests during administrative proceedings, which is often crucial to avoiding criminal prosecution.
- Internal communication audit: Checking emails and documents to rule out evidence of illegal connections with competitors.
- Leniency Program: If a violation is evident, the lawyer helps you utilize the "Leniency Program," which exempts the first applicant from liability.
Common Scenarios
Antitrust disputes often concern:
- Parallel price increases: When several companies raise prices by an identical amount simultaneously.
- Eliminating discounts: Competitors agreeing not to offer discounts to clients.
- Minimum price setting: A manufacturer dictating the resale price to distributors (Resale Price Maintenance).
Georgian Legislation
The main acts are the Law on "Competition" and Article 195-1 of the Criminal Code. Abuse of dominant position and agreements restricting competition are prohibited. The National Competition Agency is the main controlling body, whose findings often become the basis for criminal prosecution.
Process Flow
The defense strategy includes:
- Administrative stage: Involvement in the Agency's investigation and presenting evidence.
- Court dispute: Appealing the Agency's decision (fine).
- Criminal case: In case of charges, using economic expertise to prove innocence.
Why Legal.ge?
Antitrust disputes are complex and carry high financial risks. Legal.ge allows you to find lawyers with experience in cartel deals and competition law. They will help you protect your business and avoid sanctions.
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