It is important to remember that the block exemption for vertical agreements does not apply to the prohibitions referred to in Chapter II or Article 102. Therefore, any dominant undertaking on the market should take into account the potential to conflict with those provisions. However, where a practice is covered by the vertical agreement block exemption, the parties must have met the market share threshold and are therefore less likely to be considered `dominant` within the meaning of Chapter II or Article 102. Where the market share of one of the parties changes during the term of the agreement, other rules shall apply and shall not fall within the scope of this Note. Overall, the fundamental restrictions result in the loss of the block exemption for vertical agreements, although some key restrictions may sometimes be acceptable. For example, if the restriction is necessary to comply with the prohibition on selling dangerous goods, create a new market or test a new product. It is essential that the Parties focus on the potential anti-competitive effects of a horizontal agreement and ensure that legal and actual cooperation agreements concluded between two or more undertakings do not drift into the territory of Chapter I or Article 101. Price agreements are a concept linked to horizontal agreements. It is an agreement where several competing companies enter into a secret agreement to set the prices of their products in order to avoid genuine competition. Price agreements are a criminal offence under federal cartel legislation. Pricing also includes the secret setting of advantageous prices between suppliers and preferred producers or distributors to compete. Although they are not considered essential restrictions, some other provisions are also not covered by the block exemption for vertical agreements. However, unlike basic restrictions, such restrictions may, as far as possible, be separated from the agreement.
Therefore, the block exemption remains valid for the rest of the agreement. Careful drafting is therefore necessary to avoid it being covered by one of the restricted provisions and to ensure that severance pay is possible. Competition issues can arise at different levels of the production, supply and distribution chain. However, the date on which they occur may affect the likelihood or severity of anti-competitive provisions. It examines how competition law treats both vertical agreements and, to a lesser extent, horizontal agreements. Horizontal agreements can have a negative impact on the market in terms of price and product quality. On the other hand, horizontal cooperation can lead to important economic benefits such as risk sharing, cost savings, exchange of know-how and faster innovation.. . . .