Horizontal agreements are defined as agreements made between competitors in the same market or industry. These agreements can take various forms, including collusion to fix prices or limit production, sharing of sensitive market information, and agreeing to boycott particular customers or suppliers.

While horizontal agreements may seem illegal and anti-competitive, not all of them are. Some horizontal agreements can be beneficial to the market and consumers. For example, joint ventures between competitors can lead to the development of new technology and innovation, which can benefit consumers by improving product quality and lowering prices.

However, most horizontal agreements are viewed as illegal and anti-competitive, and they are subject to scrutiny by competition authorities and courts. Such agreements are harmful to consumers because they increase prices and limit choices, and they are generally viewed as a violation of antitrust laws.

Horizontal agreements can take place in any industry, from automotive to technology to agriculture. The most common forms of horizontal agreements are price-fixing and market-sharing agreements. In a price-fixing agreement, competitors agree to set a certain price for their products or services, which eliminates price competition and leads to higher prices for consumers. In a market-sharing agreement, competitors agree not to compete with each other in certain geographic areas or by certain product lines, which reduces competition and limits choices for consumers.

It is important to note that even informal agreements among competitors can be illegal. For example, a group of competitors who informally agree to limit production or to not undercut each other`s prices could be engaging in illegal collusion.

In conclusion, horizontal agreements can have both positive and negative effects on the market and consumers. While some horizontal agreements can lead to innovation and benefit consumers, most are viewed as illegal and anti-competitive. As a professional, it is important to keep these factors in mind when writing content about horizontal agreements and their impact on the market.