Antitrust » Anticompetitive Bid Rigging Schemes

Anticompetitive Bid Rigging Schemes

Bid rigging schemes are anticompetitive agreements where several parties agree in advance which party will win a commercial contract. Bid rigging schemes most commonly occur in situations where contracts are awarded by evaluating multiple competitive bids, such as government contract work.

In a bid rigging scheme, some parties can agree to not submit bids, or to submit bids that are too high or contain unacceptable conditions. In some cases, parties that are not designated to win the bid are promised subcontract work by the successful bidder.

Laws Prohibiting Bid Rigging

Anticompetitive bid rigging schemes violate federal antitrust law, notably the Sherman Antitrust Act, and are prohibited by state antitrust law, including the Cartwright Act in California.

Under federal and some state laws, private parties (businesses or consumers) who were harmed by anticompetitive conduct can bring antitrust lawsuits seeking damages (in some instance treble damages) and injunctive relief.

Victim of Bid Rigging Antitrust Violation?

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