Vertical Agreement

(redirected from Vertical Agreements)

Vertical Agreement

An agreement between two companies at different levels of the supply chain to work together. At its worst, a vertical agreement can indicate collusion. However, this is ordinarily not the case; a franchise contract, for example, is a vertical agreement.
References in periodicals archive ?
Chisholm has advised clients on multiple high-profile UK and EU mergers, vertical agreements, and dominance cases since joining CRA in December 2015.
3 of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector.
Since the landmark Grundig/Consten case, it has been firmly established that Article 101 TFEU covers both horizontal and vertical agreements.
Vertical agreements or restraints are defined by antitrust regulation as "agreements for the sale and purchase of goods or services which are entered into between companies operating at different levels of the production or distribution chain" (European Commission 2010, note 9).
In those circumstances, several individual vertical agreements can be perceived as parts of a broader horizontal agreement among the suppliers, either instigated or merely facilitated by the reseller-customer.
KZK concluded that the suppliers of bottled refined sunflower oil and their distributors had concluded vertical agreements which hampered or restricted competition on the wholesale bottled sunflower oil market.
For the Luxembourg-based court, vertical agreements of this kind - ie agreements concluded between non-competing companies - can indeed restrict competition.
Vertical agreements cover those "at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services.
Competition law cannot alone solve all the problems regarding vertical agreements.
From June 2013 there will no longer be sector-specific regulations, and vertical agreements will only be protected by Europe's general Block Exemption policy for all industries (330/2010).
In Colino's view, competition law cannot alone solve all the problems regarding vertical agreements.
To ensure certainty in the marketplace a Block Exemption was passed meaning the Act did not apply to vertical agreements or land agreements.