ABSTRACT
For the purposes of competition law, agreements between companies may be described as either ‘‘horizontal’’ or ‘‘vertical’’. The difference is whether or not the parties operate at the same level of the supply and distribution chain. ‘‘Horizontal’’ agreements are those between parties at the same level of supply. An example would be an agreement between two distributors. A ‘‘vertical’’ arrangement is between parties at different levels of supply, for instance between a manufacturer and a distributor, or between a distributor and a retailer. Vertical agreements are often referred to simply as ‘‘distribution agreements’’, although this does not reflect their diversity, which may include purchasing, supply, agency and franchise arrangements.
