In the case of Shri Shamsher Kataria v Honda Siel Cars India Ltd . Ors3, the Commission advised the concept of vertical agreements, including exclusive supply agreements, exclusive distribution agreements and refusal to conclude. Unlike in the European Union, there is currently no provision in the Competition Act that provides a mechanism for resolution or commitment for practices related to anti-competitive agreements and abuses of dominance. However, with respect to combinations with significant negative effects on competition in the market, Section 31(6) of the Act provides the parties with the option of proposing a change to the combination if they do not accept the amendments proposed by the ICC. In several cases, the parties have attempted to obtain authorization from the competition authorities in order to resolve the matter themselves. VERTICAL AGREEMENTS- Vertical agreements are agreements between two or more companies operating at different levels of production2. For example, between suppliers and distributors. Other examples of anti-competitive vertical agreements are: Send your article via our online form Click here Note we only accept original articles, we do not accept articles that have already been published on other sites. For more details Contact: editor@legalserviceindia.com Once risks have been determined by regular internal audits or other means, companies should assess these risks and conduct a cost-benefit analysis, taking into account the provisions and criminal consequences (e.g. B, reputational damage) of non-compliance with competition rules.

The risks to which the company is exposed in the context of the market, competitors and associated stakeholders should be analysed in light of the severity (if possible quantified) and the impact on all of its activities. It may even be useful to manage a matrix or risk scale (using a matrix for employee performance loneliness is common in the personal functions of most companies). This will likely be the main line with the company`s legal team to ensure that the identified risks have been properly assessed and resolved. In this context, the entity may use legal information from external and internal legal teams. Risk assessment should take into account, among other things, legal and regulatory implications (investigations, dawn raids leading to arrests of searches and seizures, sanctions, recourse against employees and individual executives, modification of agreements, division of the company that controls the company, etc.); Financial impact (in terms of share prices, loss of investor confidence, etc.); Operational impacts on the conduct of operations as usual; and reputational damage. A credible risk assessment requires the inter-departmental participation of consultants (internal and external), an assessment of the compliance and operational aspects of the business; Identifying who is responsible for implementing the compliance program. In general, the agreement can only be considered anti-competitive if the negative effects of the vertical agreement outweigh the positive effects.