Which of the following practices is considered a prohibited agreement under competition law?

Fixing prices among competitors is considered a prohibited agreement under competition law because such practices inhibit competition and can lead to higher prices for consumers. Competition law aims to maintain fair competition in the marketplace, which is essential for innovation, quality improvement, and consumer choice. When companies collude to set prices, they undermine the principle of competition that drives the market. This behavior can lead to price-fixing cartels, where groups of companies agree on pricing structures rather than allowing the market dynamics to determine prices based on supply and demand.

In contrast, setting industry standards for quality, developing new technologies, and offering discounts to loyal customers are generally acceptable practices within competition law as they can contribute positively to market dynamics. Establishing quality standards can help ensure safety and reliability, fostering an environment where competition thrives. Innovating new technologies can encourage competition by introducing new products and services. Similarly, offering discounts to loyal customers is a common marketing strategy that can enhance customer retention and satisfaction without distorting competition.