Summary
This document is a client alert that outlines the European Commission's updated guidance on joint purchasing arrangements as part of its revised Guidelines on Horizontal Cooperation Agreements. It details how joint purchasing can provide benefits such as improved pricing and product variety for consumers, while also cautioning against the risks of illegal collusion, specifically buyer cartels. The alert explains that arrangements with a combined market share below 15% are typically afforded a 'soft safe harbor,' reducing the likelihood of anti-competitive effects. It emphasizes the importance of a robust compliance structure and ongoing monitoring to align with EU competition law. Additionally, the document discusses the conditions under which joint purchasing arrangements may be deemed acceptable despite potential competition restrictions, including efficiency gains, indispensability, consumer benefit, and the preservation of competition. The alert serves as practical guidance for businesses considering joint purchasing agreements, highlighting key considerations and necessary precautions.
