LAW

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Legal Terms – Horizontal Agreements

Contracts or arrangements between companies operating at the same level in a supply chain, such as between competing manufacturers or wholesalers (as opposed to vertical agreements between suppliers and distributors).
Such agreements may breach competition law, including Article 101 of the Treaty on the Functioning of the European Union and the Chapter I prohibition in the Competition Act 1998, if they restrict or distort competition. Most cartels are forms of horizontal agreements.
The EU Horizontal Guidelines (2011) provide the framework for assessing the legality of these arrangements under competition law.


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