· Test 2: It must be included in the list of prohibited agreements provided for by the Competition Act 2018. The risks associated with an anti-competitive agreement or the abuse of a dominant position are serious. In addition to the aforementioned consequences, another risk for businesses is the disruption and deterioration of a company`s reputation resulting from lengthy investigations or subsequent disputes of customers, competitors and consumers, as well as significant legal costs and administrative time. Cartels are the most serious form of anti-competitive agreements and their continuation is a priority in many legal systems. There is a cartel when undertakings agree to act jointly, to control prices and to prevent new competitors from entering a given market. This is to benefit the cartel members while maintaining the illusion of competition. In determining whether an agreement has an AAEC under Section 3, the ICC also considers all or one of the following factors set out in section 19(3) of the Act, which is different from the Competition Act 2004. Since the Competition Act 2004 does not contain a definition of an anti-competitive agreement, it can be argued that all agreements covered by the circumstances of that law (including hardcore restrictions) constitute an anti-competitive agreement and are therefore prohibited if they meet the prescribed conditions. The fact that an agreement restricts competition does not mean that it is automatically banned, unless it is a hard-line cartel. An agreement falling within the scope of the prohibitions referred to in Chapter I or Article 101 may be excluded or excluded from the competition rules.
Vertical agreements exist between companies at different stages of the production chain, such as an agreement between the manufacturer and a distributor. The presumption rule does not apply to vertical agreements. Whether the vertical agreement caused AAEC is determined by the rule of reason. If the rule of reason is applied, the positive and negative effects of competition are analysed. . . .