I. Distinguishing between horizontal and vertical relationships is a key consideration for antitrust analysis and particularly for understanding non-price restraints.
A. Section 1 of the Sherman Act raises serious issues for agreements among horizontal players (i.e., competitors).
1. Agreements among competitors to fix prices, allocate territories, fix bids or restrict competition are typically subject to per se review and automatically illegal.
2. Agreed upon by entities that compete at the same level of distribution
3. These types of violations are frequently prosecuted criminally by U.S. Department of Justice.