Hub-and-spoke arrangements are horizontal restrictions on the supplier or retailer level (the “spokes”), which are implemented through vertically related players that serve as a common “hub” (e.g., a common manufacturer, retailer or service provider). The “hub” facilitates the co-ordination of competition between the “spokes” without direct contacts between the spokes. In the extreme, the effects of a horizontal hard-core cartel can be achieved purely based on indirect communication between the horizontally aligned members of a hub and spoke arrangement. The role of vertical restraints in facilitating horizontal collusion meets renewed interest by the enforcement and business community, in particular in the light of an increased use of pricing related tools and contractual provisions in e-commerce transactions. The business community faces the challenge of complying with legal standards which may be still unclearly defined, and awaiting clarification by the courts, through enforcement practice or agency guidelines. In December 2019, the OECD held a roundtable to explore different types of vertically organised horizontal collusion, theories of harm, standards of proof, and specific challenges raised in the e-commerce context. Market structures that warrant particular attention by competition agencies when pursuing these kinds of cases, and prioritisation of enforcement action vis-à-vis standard hard-core cartel arrangements were also considered.
INVITED SPEAKERS Matthew BENNETT Bio Vice President, Charles River Associates, London Rachel S. BRASS Bio Partner, Gibson Dunn, San Francisco Okeoghene ODUDU Bio Senior Lecturer, University of Cambridge, Faculty of Law
DOCUMENTS » OECD Background note • Note de réflexion de l'OCDE » Executive Summary with key findings
» Detailed summary of the discussion |
VIDEO: Rachel Brass on hub-and-spoke agreements |
PRESENTATIONS
RELATED BEST PRACTICE ROUNDTABLES OECD Handbook on Competition Policy in the Digital Age Implications of E-commerce for Competition Policy 2018 Competition and cross platform parity agreements 2015 Vertical Restraints for On-line Sales 2013 Information Exchanges Between Competitors under Competition Law 2010 |
SEE ALSO 2019 OECD Council Recommendation concerning effective action against hard core cartels Cartels and anti-competitive agreements Competition enforcement practices |
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