Overall, to the extent that the characterized restrictions are not included in the agreement and the parties do not exceed the market share threshold, it is very likely that a vertical agreement will benefit from the category exemption in favour of vertical agreements. Pricing is a term associated with horizontal agreements. This is an agreement whereby several competing companies enter into a secret agreement on pricing their products in order to avoid real competition. Price agreements are a criminal violation of federal cartel rules. Price fixing also involves secretly setting advantageous prices between suppliers and preferred manufacturers or distributors to beat the competition. 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. It should not be lost in mind that the category exemption for vertical agreements does not apply to Chapter II or section 102 prohibitions. Therefore, any dominant entity in the market should consider the potential for the removal of these provisions. However, where a practice is covered by the category exemption for vertical agreements, the parties must have met the review of market share thresholds and are therefore less likely to be considered “dominant” within the meaning of Chapter II or Section 102.
Horizontal agreements are restrictive agreements between competitors operating at the same level of the production and distribution chain. Horizontal agreements that, directly or indirectly, result in or are likely to have the effect of preventing, distorting or restricting competition are in themselves violations. Section 4 of the Competition Protection Act 4054 (the “Competition Act”) prohibits them directly. The parties must operate at different levels of the chain only within the meaning of the specific agreement, i.e. the parties can normally be competitors. However, when they act at different levels with respect to the agreement in question (. B for example, a manufacturer that agrees to deliver products made by another producer), it is a vertical agreement.