Horizontal Restraints

Horizontal restraints are agreements or actions among competitors at the same level of the market—like rival companies in the same industry—that limit competition. Examples include price-fixing, market sharing, or limiting production. These practices can lead to higher prices and less choice for consumers. Because they harm fair competition, such agreements are typically illegal under antitrust laws. They are different from vertical restraints, which involve relationships between companies at different levels of the supply chain, like a manufacturer and a retailer.