A vertical agreement is a term used in competition law to denote agreements between firms at different levels of a supply chain. For instance, a manufacturer of consumer electronics might have a vertical agreement with a retailer according to which the latter would promote their products in return for lower prices. Franchising is a form of vertical agreement, and under European Union competition law this falls within the scope of Article 101.[1]
Whether a vertical agreement actually restricts competition and whether in that case the benefits outweigh the anti-competitive effects will often depend on the market structure.
Contractual parties may include contractual restraints or obligations in vertical agreements to protect an investment or to simply ensure day-to-day business operation (e.g. distribution, supply or purchasing arrangements).
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A verticalagreement is a term used in competition law to denote agreements between firms at different levels of a supply chain. For instance, a manufacturer...
Horizontal agreement, that is one between competitors, will usually be de minimis where the parties' market share is 10% or less, and a verticalagreement, between...
Vertical restraints are competition restrictions in agreements between firms or individuals at different levels of the production and distribution process...
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Retrieved June 26, 2017. Colino, Sandra Marco (January 2, 2010). VerticalAgreements and Competition Law: A Comparative Study of the EU and US Regimes...
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dominant firms pricing predatorily, while allowing such practices as verticalagreements and price discrimination on the grounds that it did not harm consumers...
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