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 ?
To prevent this, identify retention and engagement plans, consider having employees sign a proprietary information agreement and create incentives for key employees to remain, including forms of executive compensation and bonuses.
Federal Board of Revenue (FBR) officials while briefing to Committee stated that government of Switzerland and Pakistan had signed an exchange of information agreement a year ago in which it is mandatory for both of countries to provide tax related information to each other when required.
Georgia General Security of Information Agreement (GSOIA) this morning at the U.
Seoul and Tokyo signed an agreement last year on sharing military information, called the General Security of Military Information Agreement (GSOMIA).
South Korea's Lim added that Seoul will resume talks with Tokyo about the General Security of Military Information Agreement pact, which allows both nations to share information about the North's nuclear activities with each other.
Under the framework, South Korea would pass relevant information to the United States, with which Seoul already has a legally-binding pact to share and safeguard intelligence called General Security of Military Information Agreement (GSOMIA).
Companies interested in the UHDA specification and the associated licensing terms can obtain the UHDA Information Agreement and/or licensing terms by going through: http://www.
However, he added, among the newly required amendments is tax exchange information agreement for money generated inside Lebanon.
In 1993, the Federation of Tax Administrators (FTA) facilitated the execution of the Uniform Exchange of Information Agreement between forty-eight states, the District of Columbia, New York City, and the Multistate Tax Commission (MTC).
The leaders also discussed, "the recent ratification of the defense cooperation agreement and general security of military information agreement by the Brazilian Congress as signs of deepening cooperation between the US and Brazilian military.
This is the second market information agreement between Nielsen and The NPD Group in 2014.
Their results showed high consistency of information in the BNF (as a golden standard) and information in the UK SmPC for all three analyzed drugs, and high consistency of information in the BNF and information in the US SmPC for two analyzed drugs (degree of information agreement was > 3 for grouped all varibles) [20].

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