The primary reason many competitors did not bid is that the bid specifications were so restrictive as to discourage participation. The supplier who wrote the specifications submits an apparent low bid for most of the products, and of course meets all specifications. This subversion of the bidding process is an unreasonable restraint of trade. The antitrust violation which may cause the most serious injury to consumers is price fixing. When manufacturers or distributors agree to fix the price of a product or service, prices paid by consumers are inflated.
Price fixing is illegal, whether at the wholesale or retail sales level or even among buyers.
Agreements which fix maximum or minimum prices are likewise illegal, such as minimum fee schedules set by associations of professionals. Example Company X, Y and Z manufacture television sets. One night at a social gathering, the Presidents of X, Y and Z chat about prices and agree that they will each establish a minimum charge for their sets. Companies X, Y and Z and their presidents, because of their agreement, are all involved in price fixing, even if they sell their television sets at various prices above the minimum agreed price. These agreements are illegal at all levels of distribution, whether among manufacturers, wholesalers or retailers.