Price fixing is an illegal practice where competing companies agree to set prices at a certain level, rather than allowing market forces to determine them. This can lead to higher prices for consumers, as it eliminates competition that typically drives prices down. Price fixing can occur in various industries, affecting everything from gasoline to consumer electronics. Governments around the world, including the United States, have strict laws against price fixing to protect consumers and ensure fair competition. Violators can face significant fines and penalties, as well as damage to their reputation. This practice undermines the principles of a free market economy.