Agreements and Concerted Practices

Agreements and concerted practices, also known as collusion, are illegal acts that undermine fair competition in the market. These acts occur when businesses or individuals come together to agree on prices, market allocation, or any other terms that would affect competition.

Such agreements are often made in secret and can be difficult to detect, but they can have a significant impact on the market, limiting customer choice, and increasing prices. Agreements can also lead to reduced innovation, lower quality products, and the exclusion of new entrants from the market.

Concerted practices, on the other hand, are activities that are not necessarily formal agreements but still have the effect of reducing competition. These practices can include sharing sensitive information, coordinated pricing, or efforts to exclude other competitors from the market.

The European Union`s competition law considers both agreements and concerted practices as restrictive practices, which are prohibited by Article 101 of the Treaty on the Functioning of the European Union (TFEU). This law aims to ensure that businesses operate in a fair and open market, allowing consumers to benefit from competitive prices and high-quality products.

To prevent and detect agreements and concerted practices, competition authorities have the power to investigate businesses suspected of engaging in anti-competitive behavior. These investigations can result in sanctions such as fines and legal action, which can damage a business`s reputation and financial stability.

Businesses must take their competition law obligations seriously and ensure that their practices do not violate European Union antitrust laws. This means that businesses must comply with the rules governing competition and avoid any behavior that would limit competition.

In conclusion, agreements and concerted practices are illegal acts that undermine fair competition in the market. The European Union`s competition law prohibits these practices and seeks to ensure that businesses operate in a fair and open market. It is essential that businesses comply with these rules to avoid sanctions and protect their reputation and financial stability.