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Anti Competitive Agreements Conclusion

The Swedish Competition Authority has defined the concept of “sensitive scope” in the general guidelines for low-importance agreements (Bagatellavtal). Subsequently, it is considered that cooperation does not significantly affect competition if, under agreements between companies operating at the same level of production or marketing, companies hold a cumulative market share of no more than 10% of the market in question (hereafter referred to as horizontal agreements). On the other hand, the market share limit is 15% for agreements between suppliers and distributors (hereafter referred to as vertical agreements). Research and development agreements and technology transfer agreements are often compatible with competition law, as some new products require expensive research that would be too costly for a company that works alone. Agreements for joint production, purchase or sale or standardization may also be legal. Article 19, paragraph 1 of the Act provides that, in the event of payment of the fees and the prescribed terms, the ICC may request any alleged violation of Section 3 (1) of the Act itself or in the case of receiving information from individuals, consumers or their association or professional association. The ICC may also act when the central government or a state government or legal authority refers to it. The ICC only continues the investigation in cases of prima facie and then orders the Director General to open an investigation into the matter. In cases where, as a result of an investigation, the ICC finds that the agreement is anti-competitive and has an AAEC, it may take any of the following orders, with the exception of the interim measures it may take under Section 33 of the Act: the question here is what is termed anti-competitive. Section 3, paragraph 2, of the Act states that the main determinant of an anti-competitive agreement is its AAEC within India. It is essential that Article 32 of the Act provides that even if an agreement had been reached outside India, the ICC would be entitled to request such an agreement if such an agreement had an AAEC in India.

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