Ec Horizontal Agreements Guidelines

admin_mondove
10.16.2021

When it comes to making business agreements, it`s important that companies follow certain guidelines to ensure fair competition and prevent anti-competitive behavior. One area where this is particularly important is in horizontal agreements.

Horizontal agreements are made between companies that operate at the same level of the supply chain. This could include agreements between competitors, suppliers, or distributors. In general, horizontal agreements are seen as anti-competitive because they can lead to the restriction of competition, price-fixing, and market allocation.

To prevent these negative outcomes, the European Commission has established guidelines for ec horizontal agreements. These guidelines provide a framework for companies to follow when making these types of agreements, in order to ensure that they are in compliance with EU competition law.

Some of the key elements of the ec horizontal agreements guidelines include:

1. The agreement must not have the purpose or effect of restricting competition in any way. This means that companies cannot agree to fix prices, allocate markets, or limit output in any way that would harm competition.

2. The agreement must have clear benefits that outweigh any potential harm to competition. This means that companies must be able to demonstrate that the agreement will lead to efficiencies, innovation, or other benefits that outweigh any negative effects on competition.

3. The agreement must be necessary to achieve these benefits. This means that companies must be able to demonstrate that the agreement is necessary to achieve the benefits that they have identified.

4. The agreement must be proportionate. This means that the restrictions imposed by the agreement must be proportional to the benefits that it will provide.

5. The agreement must be transparent. This means that all parties to the agreement must be aware of its terms and conditions, and that any anti-competitive provisions must be clearly laid out.

Overall, the ec horizontal agreements guidelines provide a valuable framework for companies to follow when making agreements with their competitors, suppliers, or distributors. By following these guidelines, companies can ensure that they are in compliance with EU competition law, and that their agreements are fair, transparent, and beneficial for all parties involved.