Fixing Price Agreement in European Competition Law

1. EU Competition Law
Price Fixing

2. Content
• Definition
• Character
• How to identify
• Cases

3. Definition
• Price fixing is an agreement between participants on
the same side in a market to buy or sell a product,
service, or commodity only at a fixed price, or maintain
the market conditions such that the price is maintained at
a given level by controlling supply and demand.

4. Character
• Illegal price fixing only occurs when there is an
agreement.
• It happens on the same side of the market.
• An agreement can be expressed or implied.
• The products will be sold at a set price.
• The purpose is to coordinate pricing for mutual benefit of
the traders.

5. How to identify
• Horizontal agreements.
• Vertical agreements.

6. Horizontal Agreements
• Purchasing agreement.
• exceed 15 %.
• Have a detailed assessment of its
effects on the market involving, but not
limited.
Market power • The purchasers must active or have a
position that is likely to be used to
harm the competitive position of other
players.
• Joint purchasing arrangements.
• The parties have a significant
Collusive outcome
proportion.
• Require the exchange of commercially
sensitive information, i.e. price.

7. Horizontal Agreements
• Agreements on Commercialization.
The parties’ combined market share
Market power
is greater than 15 %
• The commercialization costs of
the product subject to the
Collusive out come agreement can tip the balance
towards a collusive outcome.
• The parties have market power
and commercialization costs
constitute a large proportion.

8. Vertical Agreements
The agreements or concerted practices which
is direct or indirect to establish a fixed or
minimum resale price.
• The direct means : directly establish the resale price.
• The indirect means: the agreement fixing the distribution
margin…

9. Cases
• Heineken, Grolsch and Bavaria.
• Unilever and Procter & Gamble fined £280m for price
fixing.

10. References
• http://en.wikipedia.org
• http://europa.eu