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Answer to Question #46364 in Other Economics for Jafta

Question #46364
What are the main types of horizontal agreements prohibited by and the rationale for their inclusion in the Competition Act?
Expert's answer
1. Agreements that directly or indirectly determine purchase or sale prices 
2. Agreements that limits  or  controls  production,  supply,  markets,  technical  development,   investment or provision of services
3. Agreements that shares  the  market  or  source  of  production  or  provision  of  services  by  way  of allocation  of  geographical  area  of  market,  or  type  of  goods  or  services,  or  the number of customers in the market or any other similar way
4. Agreements that directly or indirectly results in bid-rigging or collusive bidding
 
Horizontal agreements tend to restrain competition. 

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