Matching a competitor's price increase (based on reading of the increase in a daily newspaper) constitutes illegal horizontal price fixing.

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Price matching a competitor's increase, when done independently and not as a result of direct coordination or agreement, does not constitute illegal horizontal price fixing. Horizontal price fixing involves an agreement between competitors to set prices at a certain level, which is illegal under antitrust laws. Reading about a price increase in a newspaper and independently deciding to match it does not involve the direct coordination or agreement that characterizes illegal price fixing.

Matching a Competitor's Price Increase (Based on Reading of the Increase