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Anti Competitive Agreement Meaning

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Despite the effectiveness of leniency programs to encourage cartel members, there are still cartels (national and international) that operate under the guise of confidentiality, and governments must therefore continue to use more conventional instruments to seek and prosecute them. Sometimes these traditional investigative tools will give the confessions or hot documents that facilitate prosecutions, but not always. The question is: in the absence of a video-monitored cartel meeting, a cooperating participant or incriminating documents, can an agreement be successfully followed, mainly on the basis of “circumstantial” evidence? Vertical agreements include agreements between two companies at different stages of the production agreement. B for example between the manufacturer and the seller, or between the seller and the distributor. The issue of vertical agreements is determined by the Tribunal on the basis of the above-mentioned motivational principle. This rule analyzes the positive and negative effects of competition. As a general rule, anti-competitive practices are considered illegal only when the practice results in a significant weakening of competition, which is why a company that must be sanctioned for any form of anti-competitive behaviour must, in general, be a monopoly or dominant enterprise in a duopoly or oligopoly with a significant influence on the market. For example, distribution agreements may be illegal when manufacturers` retailers require the company to be decorated or trained in a particular way. However, they may be permitted if the objective is to create an environment conducive to the storage or sale of the product, to offer customers personalized advice, or to prevent a distributor from “releasing” a competitor`s promotional efforts.

Each case must be assessed individually, taking into account the position of the parties in the market and the amounts involved. Anti-competitive behaviour is used by companies and governments to weaken competition in markets, allowing monopolies and dominant firms to make out-of-market profits and prevent competitors from competing. It is therefore highly regulated and punishable in cases where it seriously affects the market. Competition in a market may be limited to other than those described above. For example, there may be other types of agreements between competitors, such as price guidelines or recommendations, joint purchase or sale, setting technical or technical design standards, and the trade information exchange agreement. The CCCS will take action in the event of significant adverse effects on competition, i.e. when competition is severely hampered. In the case of price guidelines or recommendations, CCCS stated that mandatory or voluntary price recommendations and pricing rules are generally dangerous to competition and encourage all firms to set their prices independently.