Vertical agreements are widely accepted because they are less likely to solve competition problems than horizontal agreements. Horizontal agreements are concluded between two current or potential competitors. Section 4 of Competition Protection Act 4054 (the « Competition Act ») prohibits any agreement between companies with the purpose or effect of preventing, restricting or distorting competition. The types of agreements mentioned above include vertical agreements. Vertical restrictions such as resale price maintenance (RPM), most advantageous clauses for customers, exclusive transactions, discount schemes, non-competition clauses and reverse non-competition clauses are often a success in the history of competition law enforcement in Turkey. Competition problems arise when competition is not sufficient at one or more commercial levels. A vertical agreement is a term used in competition law to refer to agreements between companies operating at different levels of the production and distribution chain (for example). B relationships between producers and their customers/distributors). Some vertical agreements probably have restrictions that do not comply with Article 101 of the TFUE. These are agreements that contain provisions: for example, a consumer electronics manufacturer could have a vertical agreement with a retailer under which the retailer would sell and promote the retailer`s products, possibly in exchange for lower prices.
Such agreements could lead to a division of markets and/or the creation and maintenance of territorial restrictions. Similar vertical restrictions may be covered by the section 4 prohibition, unless they fall under a class exemption or individual exemption. A vertical agreement is a term used in competition law to refer to agreements between companies at different levels of the supply chain. For example, a consumer electronics manufacturer could have a vertical agreement with a retailer to promote its products in exchange for lower prices. Franchising is a form of vertical agreement and, according to EU competition law, this falls within the scope of Article 101.  Where it is confirmed that the parties are operating at different levels of trade within the meaning of an agreement and that the agreement has an « impact on trade », the procedure for assessing the vertical regime under Article 101 of the Treaty on the functioning of the European Union is, on the whole, as follows: even in cases where a category exemption does not apply, a vertical agreement may continue to benefit from an individual exemption. The parties are authorized to conduct a self-assessment to determine whether the restrictive vertical competition agreement meets the requirements for the individual exemption.