Vertical Agreement

Any agreement that restricts competition may be granted an exemption by the Commission if it meets the criteria given in §9 of the Act.

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In the Act, an agreement means both written or verbal agreements, arrangements, practices, or decisions between two or more businesses or by an association of undertakings, regardless of their legal form.

a.        Resale price maintenance

Resale price maintenance agreements in which the retail price is fixed by the producers or price floors or ceilings are imposed.

b.        Exclusive distribution

Exclusive distribution agreements in which distributors are given exclusivity over certain territorial area, or over particular clients, or over specifics products and services.

c.        Exclusive dealing

Exclusive dealing agreements in which downstream firms are not allowed to deal with competing producers or distributors.

d.        Tie-in (and bundling)

Tie-in (and bundling) agreements in which downstream firms must purchase additional products along with the one they want or get additional products as part of the sale.

e.        Quantity agreements

Quantity agreements are agreements in which downstream firms must purchase a minimum quantity of a product.