Competition law horizontal and vertical agreements

HORIZONTAL AGREEMENTS are those entered into by and between two (2) or more competitors.
For example, two (2) competing manufacturers could collude and agree to sell the same product at the same price.
Vertical agreements are agreements between parties at different levels of the supply chain (for example, between a manufacturer and distributor, or distributor and retailer).
An example is an exclusive dealing agreement between a supplier and a retailer, whereby the retailer agrees to only sell the supplier's products.

Do vertical agreements entail competition law risk?

However, vertical agreements may entail competition law risk when there is a chance that e.g. barriers to entry increase, competition is reduced or softened, and other ways when horizontal collusions are facilitated. Competition concerns arise when there is insufficient competition at one or more levels of trade.

How do the UK and EU approach horizontal competition?

The UK and the EU share similar principles in their legislative approach to horizontal competition, guided by the principles of a level playing field for businesses and, like Australia and Singapore, preventing anti-competitive behaviour.

What is a horizontal and vertical agreement?

‘Horizontal and vertical agreements’ explores the application of US and EU competition laws to horizontal and vertical agreements.
Horizontal collaborations and agreements take place between companies at the same level of manufacturing, distribution, or retail.

Which vertical agreements are exempted from the 'hardcore restrictions' of competition?

Vertical agreements that fulfill the conditions for exemption and do not contain any so-called "hardcore restrictions" of competition are exempted from the prohibition in Article 101 (1) of the Treaty on the Functioning of the European Union by Regulation 330/2010.

Vertical restraints are competition restrictions in agreements between firms or individuals at different levels of the production and distribution process.
Vertical restraints are to be distinguished from so-called horizontal restraints, which are found in agreements between horizontal competitors.
Vertical restraints can take numerous forms, ranging from a requirement that dealers accept returns of a manufacturer's product, to resale price maintenance agreements setting the minimum or maximum price that dealers can charge for the manufacturer's product.