Partnering with your fellow bidder instead of trying to outbid each other? (2.Viewing)

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Done that, I promised to not participate in one auction if he didn't participate in the another. We didn't influence the auctions at all because we simply decided not to bid on each others wants. It saved us both a fair bit of cash.
 
GeorgeK said:
This is called "bid rigging"

Bid rigging - Wikipedia
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From what I understand

domain1 - bidder 1 - bidder 2 not participating

domain2 - bidder 2 - bidder 1 not participating

Each bidder gets a domain but they did not bid against each other in the auctions.

Bid rigging is when company insiders or officials influence the outcome, in the case above all they did was abstain from the auction completely which can hardly be called rigging.
 
MapleDots said:
From what I understand

domain1 - bidder 1 - bidder 2 not participating

domain2 - bidder 2 - bidder 1 not participating

Each bidder gets a domain but they did not bid against each other in the auctions.

Bid rigging is when company insiders or officials influence the outcome, in the case above all they did was abstain from the auction completely which can hardly be called rigging.
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That's not correct. In your example, their agreement to collude is still bid rigging. Here's a Canadian link:

Preventing bid-rigging: Tips for tendering authorities

Recognizing bid-rigging​

Bid-rigging schemes are limited only by the imagination of those involved. However, there are four common types of agreements designed to ensure a pre-selected supplier wins the contract:

  • Cover bidding is when competitors agree up front who will win. The “losing” bidders then tweak their submissions to ensure they are less attractive than the winner’s bid
  • Bid suppression is when a competitor agrees not to bid or to withdraw a bid to make it easier for a specific bidder to win
  • Bid rotation is when competitors agree to take turns submitting bids
  • Market division is when competitors agree to divide up territory, customers, or product markets among themselves instead of competing
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Your example would fall under one of the last three types, depending on the specific details.
 
Bid-rigging, price-fixing and other agreements between competitors — Common types of illegal agreements that hinder competition

Under the Competition Act, it is a criminal offence to engage in an illegal agreement. Anyone convicted of participating in bid-rigging, price-fixing, allocating markets, restricting supply, wage-fixing or no-poaching agreements will have a criminal record.

The penalty for violating the illegal agreements provisions includes a fine to be set at the discretion of the court, imprisonment for up to fourteen years, or a combination of both.
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(emphasis added)
 
Hypothetically

So if I intend to bid on a domain and a friend is interested in the same domain and that friend asks me not to bid against him technically all I am doing is abstaining from bidding. Since I am not involved with the auction in any way I have not done anything wrong.

I guess the friend asking me would be considered doing the rigging but I wonder if that would stand up in a court of law?

Again, I am just playing devils advocate making assumptions based on post #2
 
MapleDots said:
Hypothetically

So if I intend to bid on a domain and a friend is interested in the same domain and that friend asks me not to bid against him technically all I am doing is abstaining from bidding. Since I am not involved with the auction in any way I have not done anything wrong.

I guess the friend asking me would be considered doing the rigging but I wonder if that would stand up in a court of law?

Again, I am just playing devils advocate making assumptions based on post #2
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  • Bid suppression is when a competitor agrees not to bid or to withdraw a bid to make it easier for a specific bidder to win

Both parties would be guilty, in my opinion.
 

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