Understanding Horizontal And Vertical Agreements In Competition Law

Decoding Anti-Competitive Agreements

Anti-competitive agreements are collaborations among market forces that negatively impact market competition. These agreements weaken fair competition in the market by implementing various restrictive practices such as creating entry barriers for new businesses, fixing prices, limiting or controlling production and supply, or dividing the markets amongst competitors. These agreements and restrictive practices have detrimental effects on consumers, which forces them to pay higher prices or reduces their choices in the market. Stifling competition disrupts the natural balance of the market, which in turn creates an inefficient and unfair market environment that benefits the market entities.