Horizontal agreement

A horizontal agreement occurs when competing companies at the same level in a market, like airlines or phone providers, collude or coordinate with each other. This can involve fixing prices, dividing markets, or limiting competition, which can harm consumers by reducing choices and increasing costs. Such agreements are generally illegal because they undermine fair competition and can lead to monopolies or less innovation. Essentially, a horizontal agreement is an collaboration between competitors that restricts normal competitive behavior, negatively impacting consumers and the economy.