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The main types of consultation breaches

29 May 2018
Snowcap Mountain

Illegal collusion can both involve offences that are
on the one hand, vertically, i.e. consultation between companies at different stages of the sales process,
e.g. between wholesalers or retailers, and on the other hand horizontal, but then it constitutes an illegal
the consultation in cooperation between two companies at the same level of sales, e.g. between two
Retail.

Breaches of consultation can, for example, occur in agreements,
agreed and coordinated actions. A specific form for agreements is not required.
between the parties, i.e. that they are in writing or signed, in order that they
fulfil the contractual concept in the competition law. The interpretation is therefore broad and extends to
in most cases to that cooperation which is in doubt as to whether it falls under
The concept of a contract.

Coordinated actions mean two or more
Companies coordinate their actions without a proper contract having been made.
made. However, it must be considered a condition that the companies in question have had dealings with each other.
any kind of direct or indirect communication.

The ban on consultation applies to those who have that intention
to limit competition. It is therefore independent of whether that objective is achieved or not.
It is not therefore required that the illegal collaboration actually had an effect on
the competition.

 

The main types of consultation breaches are:

Price-fixing: It is hardly possible to find more serious barriers to competition.
but when companies collude on actions that affect prices, discounts,
imposition or other commercial terms. Such measures are intended to
have a hampering effect on competition and prices.

Market segmentation: This includes the actions of companies on
at the same sales stage and regarding the segmentation of markets by region, customer or after-sales
and quantity. Likewise, vertical agreements on market exchange are also included, e.g.
between producers and distributors.

Limitation on production/supply: This involves cooperation.
which restricts or controls production, markets, technological development or investment.
It could involve competitors agreeing to limit the supply of
a product with the aim of raising its price.

Consultation on the submission of bids: This refers to competitors coming.
They agree not to take part in a particular tender; they decide to submit a bid.
at the same prices or they decide amongst themselves who is to get the business according to
in the tender. Such measures generally lead to price increases which eventually
harm consumers.

Information exchange between competitors: The behaviour of competitors is one of
the main prerequisites for unrestricted competition to take place. Information between
Competitors' statements about their intended market behaviour reduce uncertainty.
the companies involved.

Measures that hinder the entry of new competitors into
market:
With
Under this approach, existing market participants do not have to respond to new entrants.
competitors. It reduces competition and harms consumers.

Actions that discriminate between business partners with different
terms in similar transactions:
Discrimination can lead to weakening
competitive position. A typical incident of this type would be vertical competition-restricting
agreements on price or discounts which discriminate between buyers or groups of buyers.
The general principle is that discounts based on cost considerations have
competitive effect. However, discounts based on subjective and
Non-economic considerations have had a negative effect on competition between companies.

Conditions for additional obligations not related
Subject of contracts:
This applies first and foremost when a company possesses a desirable
a product or service which it intends to sell only if the buyer also purchases another
a product or service from the company. This can be used to force a buyer to
additional business that they might be able to get with more favourable terms
elsewhere.

The types that have been listed here have that in common.
having in common the main objective of raising the price of goods and services
to the detriment of consumers.

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