Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Horizontal agreement definition

What does Horizontal agreement mean? A horizontal agreement is an arrangement between businesses at the same level of the supply chain—usually actual or potential competitors—covering matters such as pricing, market allocation, output, information exchange, joint purchasing, joint production/specialisation, research and development, or standardisation. In competition law, the concept is used consistently across England & Wales, Scotland, Northern Ireland and Ireland, and is reflected in guidance from the UK Competition and Markets Authority (CMA) and the European Commission’s Horizontal Guidelines (applicable in Ireland). It is not a statutory term of art but a widely accepted descriptive category. Legal significance: under the Chapter I prohibition in the Competition Act...

Horizontal cooperation under UK competition law: CMA guidance on Chapter I Competition Act 1998, R&D and specialisation block exemptions, purchasing, commercialisation, information exchange, standardisation and standard terms

Published by a LexisNexis Competition expert

Practice notes

Introduction

This Practice Note provides an overview of the Competition and Markets Authority’s (CMA) guidance on how the Chapter I prohibition in the Competition Act 1998 (CA 1998) applies to Horizontal agreements (the Horizontal Guidance). The Horizontal Guidance supersedes the European Commission Guidelines on Horizontal Cooperation Agreements, which no longer have effect in the UK. Where relevant, this Practice Note also signposts the Competition Act 1998 (Vertical agreements Block exemption) Order 2022 (VABEO) and the CMA’s guidance on that regime (VABEO Guidance).

NOTE-The Horizontal Guidance contains a high-level outline of the block exemptions for research and development (R&D) and specialisation agreements, which took effect on 1 January 2023. These exemptions are only summarised in this Practice Note. Sustainability is excluded from the Horizontal Guidance; it is addressed in separate guidance and is not covered here.

What is a horizontal agreement?

A ‘horizontal agreement’ is a pact between independent undertakings operating at the same stage of the supply chain (that is, actual or potential competitors) to cooperate in areas including:

R&D
Production
Purchasing
Commercialisation
Standardisation
Exchange of information

Each of these topics is considered below...

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Web page updated on 29/05/2026

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