Supply Agreements Between Competitors

The potential for agreements between competitors to make use of Article 101 TFEU is high, reflecting the principle reaffirmed in the Guidelines that competing undertakings must determine their competition strategy independently of each other. The legitimate forms of horizontal cooperation discussed in this quick guide function as carefully controlled exceptions to this general rule. If the conditions for such derogations are not met, there is a high risk that the cooperation will be contrary to Article 101 and may even be regarded as a form of cartel. Any formal agreement between competitors, actual or potential, which indirectly indirectly influences the way in which they compete must therefore be subject to careful legal scrutiny. `horizontal cooperation` means an agreement or understanding between undertakings operating at the same level of the supply chain, i.e. .

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