Competition act horizontal and vertical practices

What are horizontal and vertical agreements in competition law?
Horizontal Agreements Horizontal agreements are those between competitors, i.e., entities at the same level of distribution.
Vertical agreements are those between parties on different levels of the chain of distribution, such as between a manufacturer and a distributor, or between a wholesaler and a retailer..
What are restrictive vertical practices and restrictive horizontal practices?
Restrictive vertical agreements are agreements between two bodies that are at different levels of the supply chain, so this could be a distributor and a retailer.
Restrictive horizontal agreements are the agreements made between two competing bodies..
What are vertical and horizontal restrictions?
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..
What is the difference between horizontal and vertical antitrust?
Horizontal agreements refer to agreements between competitors.
Vertical agreements refer to agreements between manufacturers and distributors.
Under Sherman Act Section 1, any agreements that unreasonably restrains competition is unlawful..
What is vertical and horizontal competition law?
1.
Horizontal Agreements Horizontal agreements are those between competitors, i.e., entities at the same level of distribution.
Vertical agreements are those between parties on different levels of the chain of distribution, such as between a manufacturer and a distributor, or between a wholesaler and a retailer..
A vertical agreement is a term used in competition law to denote agreements between firms operating at different levels of the production/distribution chain (e.g. relations between manufacturers and their customers/distributors).
If you have an anti-competitive agreement between a manufacturer and distributor, for example, that would be a vertical restraint.
This is different from a horizontal restraint, which is an agreement between competitors at the same level of production, distribution, or supply.
Restrictive vertical agreements are agreements between two bodies that are at different levels of the supply chain, so this could be a distributor and a retailer.
Restrictive horizontal agreements are the agreements made between two competing bodies.

May 10, 2022Certain practices, including restrictive horizontal practices, restrictive vertical practices, and abuse of dominance, are prohibited in

Broadly for the purposes of the competition law, agreements between the market players may be classified as either horizontal or vertical. Horizontal agreements.

Conclusion

Vertical agreements are not illegal per se and subjected to rule of reason scrutiny by the competition law regulators.
Any kind of vertical restraint agreement is scrutinized considering both the anti-competitive and pro-competitive aspects of it.
If efficiencies emanating from pro-competitive aspects of agreement outweigh the anti-competitive aspe.

Grasping The Concept of Vertical Agreements

Firstly, the term ‘Agreement’ is defined under Section 2(b) of the Act which states an Agreement encompassses: 1. arrangement; or 2. understanding; or 3. action in concert.
The arrangement or understanding or action can be formal or can be in embodiment of written form.
Also, the arrangement or understanding or action can be informal or can be in e.

How does competition law affect anti-competitive provisions?

Competition law issues can arise at various levels of the production, supply and distribution chain.
But the point at which they arise may affect the likelihood or severity of any anti-competitive provisions.
Here, we discuss how competition law deals with both vertical agreements and, to a lesser extent, horizontal agreements.

Introduction

The Competition Act, 2002(“the Act”) was enforced with an objective to regulate markets in pursuance to keep them competitive.
Market economy accomplishes better in the presence of competition.
The economic reasoning behind free-market economy is that freely performing markets lead to the efficient allocation of a nation’s scarce resources and prov.

Types of Vertical Agreements

Vertical Agreements can be categorised into five kinds:.
1) Tie-in arrangement;.
2) Exclusive supply agreement;.
3) Exclusive distribution agreement;.
4) Refusal to deal;.
5) Resale price maintenance.

What are horizontal collaborations & agreements?

Horizontal collaborations and agreements take place between companies at the same level of manufacturing, distribution, or retail.
For example, a collaboration between several car manufacturers or an agreement between two or more supermarkets.

What are the effects of an anti-competitive horizontal agreement?

An anti-competitive horizontal Agreement may have any of the following effects:

The Agreement determines the prices of sale or purchase.
An agreement between two or more competitors can have the effect of determining the prices directly or indirectly.

What is the difference between horizontal and vertical agreements?

Horizontal Agreements v.
Vertical Agreements:

Horizontal agreements refer to agreements between competitors.
Vertical agreements refer to agreements between manufacturers and distributors.
Under Sherman Act Section 1, any agreements that unreasonably restrains competition is unlawful.
All vertical agreements are analyzed under the Rule of Reason.

Competition act horizontal and vertical practices

What are horizontal and vertical agreements in competition law?

What are restrictive vertical practices and restrictive horizontal practices?

What are vertical and horizontal restrictions?

What is the difference between horizontal and vertical antitrust?

What is vertical and horizontal competition law?