Summary Horizontal Agreements

Horizontal Agreements


HORIZONTAL AGREEMENTS

 Horizontal agreements – Agreements between undertakings at the same level of the
market, e.g. manufacturers.



ANTI-COMPETITIVE EFFECTS

 Cartels
o Most common arrangement
o Includes agreements to fix price, share markets, limit output or exclude
potential new competitors from the market.

a) Regulatory authorities against cartels

 Commission
o Adopted the Leniency Programme.
o Uncovers and sanctions price-fixing, market sharing and bid-rigging cartels
over last few years.
 CMA
o Amendments made to EA 2002 > Remove requirement of dishonesty from
cartel offence.
o UK courts have had power since 2003 > Impose custodial sentences on
offending employees and Ds.
 OECD
o Organisation for Economic Cooperation and Development.
o Launched its anti-cartel programme (1998).
o Published recommendations and guidance > Stresses need for enhanced co-
operation between competition authorities.
 ICN
o International Competition Network.
o Aims to facilitate cooperation between competition authorities globally.
o Cartel Working Group
 Addresses anti-cartel enforcement;
 Primary consults each other by email or ‘webinars’;
 Arranges discussions at the ICN’s annual conference > Produces
guidance on competition law enforcement.