Cma Vertical Agreements Consultation

The competition and markets authority (CMA) has launched a consultation on vertical agreements. Vertical agreements are contracts between businesses at different levels of the supply chain. For example, a manufacturer and a retailer. The consultation aims to understand how these agreements operate in practice, the benefits and harm they cause to competition.

Vertical agreements are common in the retail sector, where manufacturers and suppliers sell to retailers who then sell to consumers. These agreements can have both positive and negative effects on competition, depending on the terms and conditions of the agreement. Some of the positive effects include price reductions, increased competition among retailers and manufacturers, and the ability to offer a wider range of products to consumers.

However, vertical agreements can also have negative effects on competition. For example, if a manufacturer has exclusive agreements with a particular retailer, it may limit the ability of other retailers to compete in the market. This can lead to higher prices for consumers and a reduction in choice.

The CMA is seeking feedback on these issues and more. They are interested in hearing from businesses, consumer groups, and other stakeholders about the impact of vertical agreements on competition. The consultation will help to inform the CMA`s understanding of these agreements and may lead to changes in competition law.

If you are a business or consumer group that is affected by vertical agreements, this is an important consultation to participate in. Your feedback will help to shape future competition policy in the UK. The consultation closes on 3 September 2021, and the CMA encourages all interested parties to submit their views.

In conclusion, the CMA`s consultation on vertical agreements is an important opportunity for stakeholders to provide feedback on the impact of these agreements on competition. As a professional, it is important to ensure that any content related to this consultation is optimized for search engines to reach a wider audience. By doing this, businesses and consumer groups can provide their feedback to the CMA and help shape future competition policy in the UK.