Michael J. Petro, Chicago’s Leading AntiTrust & Bid-Rigging Lawyer
Bid-Rigging is arrangments made by companies to predetermine who will win business contracts.
There are two types of Bid-Rigging:
- Bid Suppression
- Complementary Bidding
Bid Suppression is when two competitors would usually bid for a contract, but one refrains from bidding to guarantee the contract for the other company.
Complementary Bidding is when competitors put in bids like they normally would, but the bids are overpriced or have other strings attached that make them unacceptable and get immediately declined.
Bid-Rigging is basically a way for businesses to get more profit out of the entity that is creating the contracts. Instead of two companies driving prices down by both bidding low for a contract, instead they alternate bids that are higher, securing higher profits for both of them out of each contract.
Learn More About Bid-Rigging And Antitrust Laws From Chicago’s Premier Antitrust Lawyer
Bid Rigging can cause businesses huge losses and negatively impact the livelihood of the owners of those businesses. The businesses themselves can even fail due to the increased prices caused by the bid-rigging.
On top of the implications for businesses, Bid-Rigging also has huge impacts on the consumers themselves. Bid-Rigging causes contracts to cost substantially more for businesses, which in turn reduces their profit margins on projects. This can cause them to increase prices on goods and services in order to make up for the reduction in profit margin, costing consumers more for the same goods and services.
As one of the most common violations of antitrust laws, anyone can fall prey to Bid-Rigging. If you have fallen victim to a Bid-Rigging violation, call Attorney Michael J. Petro at 312-913-1111 to get the antitrust legal service you need.