Vertical Vs Horizontal Agreements

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. NERA`s European competition team is at the forefront of implementing a stricter economic approach to the evaluation of horizontal and vertical agreements. Our experts have analyzed the economic impact of numerous agreements between companies at different levels of the supply chain, including selective distribution, exclusive distribution, exclusive trade and the impact of recommended retail prices. Nera economists play an important role in this developing area of European competition policy. for the purposes of applying Article 101(1), the actual effects of an agreement shall not be taken into account as soon as it is found to be intended to prevent, restrict or distort competition`; [8] Vertical agreements are widely accepted as they raise fewer competition concerns than horizontal agreements. Horizontal agreements are concluded between two current or potential competitors. NERA`s anti-dominant experts assessed the economic reasons and effects of horizontal and vertical agreements around the world. In the United States, NERA experts analyzed the impact of agreements on competition in sectors as diverse as animal feed, soda, software, industrial products, coal, and franchising (including restaurants, tools, and professional sports). However, the ECJ did not agree with the GA and argued that the wording of Article 101 did not indicate a distinction between horizontal and vertical agreements. .

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