information agreement

information agreement

an agreement between rival suppliers which involves them in furnishing each other with details of their prices, discount terms, output and sales figures, profit margins etc. Although some of the information exchanged may be innocuous and could be obtained from normal trade sources (for example, rivals' prices), some data is of a highly confidential nature, and prompts one to ask why firms are prepared to disclose such information to competitors. In the UK, concern that information exchanges between competitors might well be used as a cloak for COLLUSION between firms has led to their prohibition. See COMPETITION ACT, 1998.

information agreement

an arrangement under which firms undertake to furnish a central agency, usually their TRADE ASSOCIATION, with data on such things as prices, discounts, conditions of sale, etc. These data are compiled and then circulated to each firm involved in the agreement. Information exchanges can take place either on a post- or prenotification basis. In the former case, information is made available to other firms only after, for example, a change in prices, while in the case of prenotification schemes, firms are notified of proposed price changes, etc., in advance of a definite commitment being made. It will be readily apparent that such information exchanges, particularly prenotification exchanges, provide a cloak for COLLUSION between competitors.

In the UK, under the COMPETITION ACT 1998, information agreements are a form of CONCERTED PRACTICE and are prohibited outright and referred for investigation to the RESTRICTIVE PRACTICES COURT.

See COMPETITION POLICY.

References in periodicals archive ?
South Korea said last week it would terminate an intelligence-sharing deal known as the General Security of Military Information Agreement.
Under an arrangement called GSOMIA, short for General Security of Military Information Agreement, Seoul and Tokyo, frequent diplomatic frisson notwithstanding, have cooperated on sharing intelligence during the past three years.
Seko also denounced South Korea's scrapping the military intelligence agreement, called the General Security of Military Information Agreement, or GSOMIA, arguing the trade decision was not directly related to military cooperation.
Last week, Seoul announced its decision to end the pact, called the General Security of Military Information Agreement, seen as a rare symbol of security collaboration between the two countries.
As a countermeasure, the South Korean government decided not to renew the General Security of Military Information Agreement (GSOMIA) with Japan, which had allowed the two countries to share defensive military information mostly related to North Korea, on August 22.
The intelligence pact, called the General Security of Military Information Agreement (GSOMIA), has benefited South Korea's military to collect key information on North Korean nuclear and missile activities, as Japan operates seven spy satellites while South Korea has no such strategic assets.
The South Korean military also noted that it will share its confidential information on the latest launches with Japan upon Tokyo's request under the framework of the bilateral intelligence-sharing pact of the General Security of Military Information Agreement (GSOMIA).
In a stunning move that could further upend already fraying ties between Japan and South Korea, Seoul on Friday scrapped the General Security of Military Information Agreement (GSOMIA) with Tokyo, with the South's presidential Blue House saying in a statement that it did not meet Seoul's "national interests" to maintain the deal amid the intensifying spat between the two neighbours.
The deal in question -- the General Security of Military Information Agreement (GSOMIA) -- is set to expire on August 24.
"The Department of Defense expresses our strong concern and disappointment that the Moon Administration has withheld its renewal of the Republic of Korea's General Security of Military Information Agreement (GSOMIA) with Japan," Pentagon spokesman Lieutenant Colonel Dave Eastburn said in a statement.
Seoul's decision not to extend the General Security of Military Information Agreement (GSOMIA) shows how the political and trade dispute between the Asian neighbours and US allies has hit some of the region's most sensitive security issues.
However, it has refused to fulfil its responsibility under the Advance Flood Information Agreement (AFIA) signed in 1989 during the first government of former prime minister Benazir Bhutto in the wake of the 1988 floods in Pakistan, according to a senior official at the Pakistan office for Indus waters.

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