What is a horizontal agreement?

Section 3 (3) of the Act deals with Horizontal Agreements. As explained in the introduction, horizontal agreements are essentially agreements between competitors. These competitors are at the same stage in the production chain and exist in the same market. From a reading of Section 3 (3) of the Act, the following equation may be arrived at:

Are horizontal agreements void?

Horizontal Agreements are void and the Competition Commission of India may impose a penalty upon the parties to the Agreement under Section 27 of the Act after it has made an inquiry. This article has sought to provide an understanding of Agreements having an Appreciable Adverse Effect on Competition in India, emphasising Horizontal Agreements.

What regulations apply if horizontal agreements result in a concentration?

Where horizontal agreements result in a concentration, Regulation (EC) No 139/2004, the ‘merger regulation’, applies (see summary ). The guidelines set out the criteria for assessing the application of the competition rules under Article 101 TFEU: