What are Anti-competitive agreements? What are the various types of Anti-competitive agreements ?

Anti-competitive Agreements Anti-competitive agreements are the agreements between enterprises or association of enterprises in respect of production, supply, distribution, storage, acquisition or control of goods or provisions of services which cause or likely to cause an appreciable adverse effect on competition within India. The Anti-competitive agreements are of two types - horizontal agreements and vertical agreements. Horizontal agreements Price fixing section 3(3)(a) of the Competition Act, 2002 - Price fixing occurs when two or more firms agree to trade or fix the prices in order to increase their profits by reducing competition. It is an attempt at forming a collective monopoly. Limited the production or supply [section 3(3)(b) of the Competition Act, 2002] - The object of these agreements or arrangements is to eliminate the competition by limiting the quantity. Allocation of market share [section 3(3)(c) of the Competition Act, 2002] - It is the agreement among enterprises that will have exclusive or preferential rights in a designated area for sale, production or provision of services or otherwise. Bid rigging (section 3(3(d) of the Competition Act, 2002] - An agreement, between enterprises or persons engaged in identical or similar production or trading of goods or provision of services, which has the effect of eliminating or reducing competition for bids or adversely affecting or manipulating the process for bidding. Bid rigging is a particular form of collusive price fixing behaviour by which firms coordinate their bids. Vertical agreements Tie-in-arrangement [section 3(4)(a) of the Competition Act, 2002] - It is an agreement requiring a purchaser of goods as a condition of such purchase, to purchase some other goods. Exclusive supply agreement [section 3(4)(b) of the Competition Act, 2002] - Exclusive supply agreement or exclusive dealings means an arrangement of practice whereby a manufacturer or supplier requires to deal exclusively in his products not in the products of his competitors. Exclusive distribution agreement [section 3(4)(c) of the Competition Act, 2002] - Exclusive distribution agreement or exclusive territory includes agreement between enterprises that will have exclusive or preferential rights in a designated area for sales production, performance of services. Refusal to deal [section 3(4)(d) of the Competition Act, 2002] - The practice of restricting persons or class of persons to whom the goods are sold or from whom the goods are bought. Resale price maintenance [section 3(4)(e) of the Competition Act, 2002] - It is a situation in which the supplier forces the distributor/retail seller to sell the goods to the customer at prices stipulated by the supplier.