Horizontal Agreement Definition Economics

The threshold for the cumulative market share that contracting entities can achieve in order to qualify for a category exemption is 20% (for specialization agreements) or 25% (R and; D). If these values are exceeded, research and development and specialisation agreements are not automatically prohibited, but must be assessed individually in light of the exemption under Article 101, paragraph 3, of the EUFS. This glossary is the list of keywords used by the Search Engine Competitions. Each keyword is automatically updated by the latest EU and national jurisdictions of the e-Competitions bulletin and competition review. The definitions are included in the DG COMP glossary on EU competition policy concepts (© European Union, 2002) and the OECD glossary of competition rules (© OECD, 1993). agreement between the actual definition or definition of potential competitors, i.e. companies operating at the same level of the production or distribution chain. B and which include research and development, production, purchasing or marketing. Horizontal agreements can restrict competition, particularly when they involve price fixing or market-sharing measures, or when the definition of market economy services resulting from horizontal cooperation has negative market effects in terms of price, production, innovation or product diversity and quality. On the other hand, horizontal cooperation can be a way to share risks, reduce costs, pool know-how and accelerate innovation.

For small and medium-sized enterprises in particular, cooperation can be an important means of adapting to the changing market. The article 101, paragraph 3 evaluation of the EUTF is carried out by a market analysis that carefully balances the anti-competitive and anti-competitive economic effects of an agreement. Only if the positive effects outweigh the negative effects will a company be able to benefit from an exemption from the prohibition of cartels, despite high market share. EE-MC has exceptional know-how to carry out such analyses and to properly define the market. Note: Horizontal agreements are generally considered to be a breach of cartel and abuse of dominance rules. Horizontal agreements (i.e. agreements between companies operating at the same level of production or trade) can affect competition and are subject to EU competition rules, including Article 101 of the TFUE. In 2011, the European Commission adopted guidelines for the evaluation of cooperation agreements between competitors. These guidelines complement category exemption regulations for research and development agreements and specialization agreements.

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