• MiikCheque@lemmy.world
    link
    fedilink
    arrow-up
    2
    ·
    edit-2
    1 year ago

    what normal competition would support.

    Maybe it’s the overall price of something else that’s not shown

    Tech Giants Settle Wage-Fixing Lawsuit

    That did happen.

    What’s perceived as competitors can be allies to accomplish common goals. Though they settled the lawsuit, it’s not like this got put out of practice. They refined it

    • MooseBoys@lemmy.world
      link
      fedilink
      arrow-up
      2
      ·
      edit-2
      1 year ago

      emails from top executives including the late Mr. Jobs, Google co-founder Sergey Brin and then-CEO Eric Schmidt surfaced, showing the executives conferred on hiring plans

      This is the defining characteristic of price / wage fixing - out-of-band collusion of price setters to discourage competition. There isn’t even an allegation that this is happening here.

      • Stephen304@lemmy.ml
        link
        fedilink
        arrow-up
        3
        ·
        1 year ago

        That’s why it’s so brilliant. If you can develop an in-band system to coordinate arbitrary price increases between firms then you have plausible deniability. Who needs price fixing if you can just temporarily increase price, see who’s price matching algorithms follows, and act accordingly using an algorithm that acts so fast that consumers are none the wiser when the “negotiation” to increase price fails.

        The fact that the impetus for the price increase is nothing more than to test if other firms will raise their prices to match an increase and has nothing to do with supply or demand of the product makes it transparent that this strategy achieves the effect of price fixing without the smoking gun of explicit negotiation and plausible deniability that they are simply engaging in “price leadership”.