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Type Of Horizontal Agreement

Vertical agreements are therefore considered by competition authorities to be less likely to lead to anti-competitive practices. Although competition problems may arise, where a contracting party has significant market power, or if there are a number of similar agreements that, together, could have an impact on the market. If the class exemption for vertical agreements does not apply to an agreement, it may continue to be allowed, notwithstanding the prohibitions of Chapter I or Section 101, where the benefits of the agreement outweigh the anti-competitive effects. EU competition law provides for several category exemptions that exclude certain regimes from the Article 101 ban. These category exemptions also apply to agreements that may be covered by the Chapter I ban. There are several exemptions per EU category that can apply to horizontal agreements (see the impact of Chapter I or Article 101 bans on horizontal agreements?). The main and most frequent types of anti-competitive horizontal agreements are price fixing, supply manipulation, market allocation/distribution and refusal of transactions (group boycott). These horizontal agreements generally have the form of an agreement, which is explained in a separate subcategory. The European Commission has published guidelines on vertical restrictions to determine when an agreement should be exempt from the bans in Chapter I or Article 101. In general, vertical restrictions are less anti-competitive than horizontal restrictions. See the `horizontal guidelines`: guidelines on the applicability of Article 101 of the Treaty on the Functioning of the European Union to horizontal cooperation agreements (OJ L 199 of 11.12.2001, p. 1).

OJ C 11, 14.1.2011, p. 1-72). In order to qualify for the category exemption from the vertical agreement, the agreement must be a vertical agreement or a concerted practice between at least two companies dealing with the terms of purchase, sale or resale of services or goods. The parties must operate at different levels of the production, supply and distribution chain within the meaning of the specific agreement. The class exemption does not apply where the agreement is between competing firms, unless competition is the result of only activities outside the agreement. The horizontal agreement is a cooperation agreement between two or more competing companies operating at the same level in the market. It is usually a matter of establishing a healthy relationship between competitors. The key clauses of the agreement may contain guidelines on pricing, production and distribution.

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