8. Horizontal and vertical agreements

Abstract

‘Horizontal and vertical agreements’ explores the application of US and EU competition laws to horizontal and vertical agreements. Horizontal collaborations and agreements take place between companies at the same level of manufacturing, distribution, or retail. A horizontal cooperation agreement may include restrictions on companies’ freedom to compete on their operation, or may include provisions which facilitate exchange of sensitive information. It is worth considering information exchange agreements. Meanwhile, vertical agreements are agreements between companies operating at different levels of the production or distribution chain. Exclusive distribution agreements and most-favoured-nation clauses (MFN) illustrate the possible anti-competitive effects of vertical agreements.