ABSTRACT

This chapter addresses partnering from the procurement viewpoint. The aim of both procurement and competition rules is to maintain competition in the market place to the benefit of consumers. The partnering relationship creates and restructures relationships between different purchasers and suppliers. In creating these new relationships, partners need to be aware that the competition and procurement rules may apply in certain situations. Competition issues can arise when companies are merged, taken over or where they are setting up joint ventures to operate in the marketplace. Where companies have limited market power, agreements entered into by them are unlikely to have an appreciable restriction on competition. Smaller companies involved in partnering should be aware that if companies with a substantial market share are involved in the partnering arrangement, the competition rules will apply and the de minimis rules will not provide protection for the smaller companies involved.