When competitors collude, conspire, or agree among themselves they are engaging in horizontal restraints of trade
Competitors engage in horizontal barriers to the trade when they coordinate, cooperate, or agree among themselves. They might be controlling prices, limiting output, separating territory, and other things instead of competing to bring down prices and raise quality. Such situations can unreasonably harm competition as well. Thus, vertical constraints are typically imposed on purchasers by suppliers.
In such a scenario, there is also pricing below cost until a competitor withdraws, then boosting those prices to super competitive levels is known as predatory pricing. Further, there is selling of essentially similar commodities at different prices to different buyers at reasonably concurrent times is known as price discrimination, and it has the negative impact of undermining competition.
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