Antitrust Guide to Market Arrangements

Vertical Arrangements

Contractual and ownership relations along the supply chain, such as the relations between a manufacturer and its distributors. As the components of supply chains, vertical arrangements tend to be procompetitive. However, vertical arrangements could constitute unreasonable restraints of trade, including by facilitating horizontal restraints.

EXAMPLE
International Boxing Club concerned a couple of boxing promoters (Norris and Wirtz) who gained control over the market for boxing championships. They gained control by (1) acquiring equity in the four most popular arenas in the United States, and (2) entering into agreements with boxing champions giving them exclusive promotion rights, including rights to radio, television, and movie revenues.

Antitrust
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