this post was submitted on 25 Jun 2026
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Isn't that called price fixing, and is generally illegal?
no?
Agreed, it's obviously not related to that concept. Confusing suggestion.
This is just like selling / buying options in any other industry, e.g farming to buy something at a specified price in the future.
They've agreed to buy XYZ product at 123 time at a price between $100 and $200.
If prices plummet, they've still agreed to buy it at $100 (similar to selling a $100 Strike options PUT), but if prices skyrocket, they don't need to pay more than $200 (similar to buying a $200 Strike options CALL)
Anything in between is just the price, so if it's $150 then its just $150
It's not exactly the same as using options, but the rough idea.
I've never signed a contract to buy something 5 years from now at a certain price.
You're not a company dealing with massive inventories :P
It's a real thing.
Unfortunately yes, but the current government is not going to enforce the laws
its price fixing if the agreement is among 'competitors' - this is price fixing for a customer(s)
If there’s some collusion, sure, but you’d have to find a government body with the will and teeth to prosecute.
Nothing really against charging whatever you feel like outside of things like certain supplies during disasters. It’s shitty
Only if regulatory bodies do something about it.
Wouldn’t this just be selling security?
You would enter the SCA if you want to secure your supply chain against the risk of inflated pricing. The risk would now be overspending if the market drops. Comparing the two risk profiles, an organization might decide that they have more stomach for overpaying a set amount over 5 years. As opposed, of course, to the risk of paying an arbitrarily expensive amount indefinitely as the market remains volatile.
So now, while planning out the next 5 years of business objectives, you can plan against a much more solid best/worst case scenario. That minimized uncertainty, which lets the business keep moving even if at a more expense pace.
Yes, but the fine is far lower than their profits here... so, it's only illegal if you can't afford it.
"Cost of doing business"
Yes, but it's AI, and Peter Thiel have bought all the politicians he could, so they will let them get away to "gain an advantage against China in AI".