Two competing cement manufacturers agree with each other to fix a common price for cement and to limit production in the market. Under the Competition Act, 2002, this agreement is:

Explanation: An agreement among competitors to fix prices, limit production, or divide markets is an anti-competitive (cartel) agreement prohibited under Section 3 of the Competition Act, 2002. Price-fixing and supply-restriction agreements are presumed to have appreciable adverse effect on competition and are per se anti-competitive. Section 4 applies to abuse of dominance (unilateral conduct by a dominant firm), not to horizontal agreements among competitors. The jurisdiction of the Competition Commission of India extends to such cartels. Cartel activity is thus squarely within Section 3.