As a professional, I am here to provide you with a clear definition of the term “banned agreement”. A banned agreement, also known as a prohibited agreement, is an agreement between companies or individuals that is illegal or violates antitrust laws.
Antitrust laws are put in place to prevent businesses from engaging in anti-competitive behavior that could harm consumers or restrict competition in the marketplace. Any agreement between companies or individuals that restricts competition or market access violates antitrust laws and is considered a banned agreement.
Examples of banned agreements include price fixing, bid rigging, market allocation, and exclusive dealing. Price fixing is when competitors agree to set their prices at a certain level, which eliminates competition and harms consumers. Bid rigging is when companies agree to collude on bids, which restricts competition and can result in higher prices for consumers.
Market allocation is when companies agree to divide up markets or customers, which restricts competition and can lead to higher prices. Exclusive dealing is when a supplier agrees to only sell to a certain buyer, which can eliminate competition and harm other potential buyers.
Banned agreements are taken very seriously by antitrust regulators, and companies found guilty of engaging in them can face hefty fines and other penalties. It is important for companies to be aware of antitrust laws and to avoid any agreements that could be considered anti-competitive or violate these laws.
In conclusion, a banned agreement is an illegal agreement between companies or individuals that violates antitrust laws and can harm competition and consumers. It is important for businesses to stay informed about antitrust laws and to avoid any behaviors that could be considered anti-competitive.