Mirghasem Jafarzadeh; masumeh akbarian.tabari
Abstract
A vertical agreement is an agreement between two or more economic entities, each of which operates at different levels of the commercial market. These agreements may contain non-price excluding terms that are contrary to competition law. One of the controversial issues in this regard is whether competition ...
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A vertical agreement is an agreement between two or more economic entities, each of which operates at different levels of the commercial market. These agreements may contain non-price excluding terms that are contrary to competition law. One of the controversial issues in this regard is whether competition law will recognize non-price restraints on vertical agreements as detrimental to competition or not only does it not constitute a barrier to competition but also finds it useful in competition. The findings of the comparative studies show that non-price restraints on US and EU competition law are among the suspected restraints, however, due to the different approaches in competition law policies, the scope of inclusion in both legal systems is different. U.S jurisprudence has recognized it as independent restrictive arrangements and analyzes it under the rule of rationality. There are general and individual exemptions in EU law for the assessment of vertical restraints, which are declared legitimate if they meet the stated criteria. In Iranian law, the competitive approach to these restraints is ambiguous due to the lack of an explicit position, however, by relying on the general rules of competition law and the interpretation of Articles 44 and 45 of Law on Implementation of General Policies of Principle (44) of Constitution, we can find examples of restrictive procedures and agreements that can be adapted to these restraints in US and EU competition law.
Mirghasem Jafarzadeh; Abbas Ansari
Volume 2, Issue 7 , March 2015, , Pages 73-97
Abstract
Vertical agreements refer to agreements made between those entrepreneurs who are at different level of the production chain. These agreements may contain some restrictive clauses which are not compatible with competition rules and regulation. Some of them have both negative and positive effects ...
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Vertical agreements refer to agreements made between those entrepreneurs who are at different level of the production chain. These agreements may contain some restrictive clauses which are not compatible with competition rules and regulation. Some of them have both negative and positive effects on competition. Rule of reason and economic analysis can determine their prohibition or permission. At the same time there are some other terms which, due to their special features and inherent negative effects, are regarded as presumptively and Per se illegal and named as hardcore restrictions, such as minimum resale price maintenance and territorial restrictions. At the first part, this article discusses the concept of prohibited vertical agreements. It also examines various instances of these agreements, and analyses each instance from comparative perspective of European Union, United States and some other countries. At the second part of this article, Iranian competition law in the light of vertical restrictive clauses is examined. In doing so, some shortcomings of Iranian competition rules and regulation in respect of hardcore restrictions will be highlighted by presenting a practical and critical assessment. This article concludes by proposing some recommendations for reform of Iranian competition law as to restrictive vertical agreements.
