Decisions of associations of undertakings meaning

Prepared in collaboration with Bilal Shaukat, partner, and Shahbakht Pirzada, associate partner, at Pakistani law firm RIAA Barker Gillette, on key issues concerning merger control in Pakistan. Note—to check whether notification thresholds in Pakistan and across the globe are satisfied, see Where to Notify. 1. Have there been any recent developments regarding the Pakistani merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Pakistan? The Competition Commission of Pakistan (CCP) has recently issued the Competition Exemption Regulations 2020 (2020 Regulations). These Regulations set out the procedure for seeking an exemption from a prohibited agreement. The Competition Act 2010 (the Act) forbids undertakings and associations of undertakings from entering into prohibited agreements. Prohibited agreements—or, for associations of undertakings, decisions—concern the production, distribution, acquisition or control of goods, or the supply of services, whose object or effect is the prevention, restriction or reduction of competition in the relevant market...

Vertical agreements Under section 2(1) of the Competition Act 1998 (CA 98), vertical agreements are banned. The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) has revised the language in section 2 so that, in specified situations, it captures arrangements carried out beyond the UK. The prohibition covers agreements between undertakings, concerted practices, and decisions of associations of undertakings that have as their object or effect the prevention, restriction or distortion of competition within the UK, or any part of it, and which may influence trade in the UK or a part of it where such agreements, decisions or practices are implemented, or intended to be implemented, in the UK. In all other instances, the ban extends to conduct likely to have an immediate, substantial and foreseeable impact on trade within the UK or a part of the UK. In addition, section 2(3) CA 98 requires that an agreement is implemented, or intended to be implemented, in the UK. As indicated above, the DMCC Act adjusts the scope...

The notion of concerted practice set out in Article 101(1) TFEU empowers the European Commission (Commission), national competition authorities, and national courts to forbid particular kinds of anti‑competitive conduct among undertakings that fall short of an agreement in this field. For an overview of Article 101(1) TFEU, see further, The prohibition on restrictive agreements, for present purposes. Concept of concerted practices: definition and underlying rationale Article 101 TFEU distinguishes between agreements between undertakings, decisions by associations of undertakings (which we do not address here), and concerted practices. An agreement presupposes that the parties subscribe to a common plan that restricts, or is liable to restrict, their independent commercial conduct by determining how they will act or refrain from acting on the market. By contrast, a concerted practice captures undertakings that knowingly engage in collusive behaviour to lessen uncertainty in the marketplace. Unlike an agreement, such collusion does not require the participants to commit to a common plan laying down their conduct in the market. It suffices that the...