Vertical And Horizontal Agreements Competition Law

The definitions are taken from DG COMP`s glossary on terms used in EU competition policy (© the European Union, 2002) and the OECD`s Industry Organisation Glossary on Economics and Competition Law (OECD ©, 1993). There is more flexibility compared to other vertical agreements. For example, under the block exemption, the following types of agreements are not considered to be `core agreements` (so-called `non-core agreements`): some vertical agreements may contain restrictions that are not compatible with Article 101 TFEU. These are agreements that contain provisions: the competition regime, its exceptions and detailed provisions are complex and commercial legal advice should be used where there is a risk of competition, whether at national or European level. Careful consideration of the commercial relations between the parties concerned and the specific elaboration can significantly reduce the likelihood that an agreement will be considered contrary to the competition rules. Although they are not considered essential restrictions, some other provisions are also not covered by the block exemption for vertical agreements. However, unlike basic restrictions, such restrictions may, as far as possible, be separated from the agreement. Therefore, the block exemption remains valid for the rest of the agreement. Careful drafting is therefore necessary to avoid it being covered by one of the restricted provisions and to ensure that severance pay is possible. Overall, it is very likely that a vertical agreement, unless basic restrictions are included in the agreement and the parties do not exceed the market share threshold, would benefit from the block exemption for vertical agreements.

Horizontal agreements are agreements between two or more parties operating at the same level of the production, supply and distribution chain, for example.B. between two suppliers or two retailers. Examples include joint sales agreements, joint purchasing agreements, specialisation agreements and R&D agreements between competing companies. . . .

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