The Guidelines on horizontal cooperation agreements are designed to help companies determine whether their cooperation agreements are compatible with the competition rules by providing a framework for assessment under Articles 101 (1) and (3) of the Treaty on the Functioning of the European Union (TFEU).

The guidelines provide a framework for assessing collaborations between actual or potential competitors, as well as non-competitors, under EU competition law, particularly Article 101 of the TFEU. These agreements can generate significant economic benefits, such as cost savings, risk sharing, enhanced product quality and variety, increased investment, and accelerated innovation. However, they also have the potential to present significant competition concerns if they negatively impact market dynamics, such as by limiting price competition, reducing output, curtailing innovation, or diminishing product variety and quality.

To ensure these agreements align with the internal market regulations, the European Commission evaluates whether they restrict competition by object or effect under Article 101(1) TFEU. Agreements that restrict competition, like price-fixing arrangements, are prohibited. For others, a detailed analysis of their actual and potential effects on key market factors is conducted.

Horizontal agreements are evaluated based on market power, the competitive landscape, and factors like market entry barriers. While the guidelines specifically emphasise agreements like research and development, production, purchasing, commercialisation, standardisation, and information exchange, special attention is given to how information is shared among competitors. While sharing information can reduce costs and improve consumer choices, it can also facilitate anti-competitive practices such as tacit collusion, especially when it involves strategic data like future pricing or planned output.

For more information, see: Competition: Commission adopts revised competition rules on horizontal cooperation agreements (Q&As)

• Guidelines on the applicability of Article 101 of the Treaty on the Functioning of the European Union to horizontal co-operation agreements

• Article 101 of the Treaty on the Functioning of the European Union