Question

What are vertical and horizontal agreements explain with examples?

Answer 1

$\bigstar \huge \underline \mathbf{HORITZONTAL \: AGREEMENT}$

Horizontal Agreement is an agreement for co-operation between two or more competing businesses operating at the same level in the market. This is generally to develop a healthy relationship between competitors. The substantial clauses of the agreement may include policies regarding pricing, production and distribution.

$\bigstar \huge \underline \mathbf{VERTICAL \: AGREEMENT}$

A vertical agreement is a term used in competition law to denote agreements between firms at different levels of the supply chain. For instance, a manufacturer of consumer electronics might have a vertical agreement with a retailer according to which the latter would promote their products in return for lower prices.