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Our policy is to promote fair competition.
Therefore employees are advised to abide by all antitrust laws and regulations.
Violations are subject to sanctions and fines and may lead to the invalidity of the respective agreement.
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Horizontal agreements
Agreements and concerted practices between competitors (horizontal agreements) which have as their objective or effect the prevention or restriction of competition are especially prohibited. These comprise, for example, agreements on prices, tenders, allocation of customers, terms of sale, production or sales quotas or the carving-up of geographical markets.
Not only agreements i.e., express arrangements, but also concerted arrangements resulting from a sequence of unilateral declarations (e.g., announcements of price increases aimed at triggering the same reactions from competitors) are forbidden.
In the course of contacts with competitors it must always be ensured that no information is accepted or given which permits any conclusions being drawn as to the present or future market conduct of the party providing the information.
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Vertical agreements
Also, many types of vertical agreements, i.e., arrangements and agreements between suppliers and customers or patent holders and licensees, are forbidden in Germany, the E.U. and the United States, although with slight differences.
These include restrictions of the customer’s freedom to set prices and conditions of supply in respect to their business partners (geographical, customer or application restrictions), certain most-favored-customer clauses, exclusivity such as total requirement or exclusive supply as well as non-competition.
In many cases the admissibility and, as a result, effectiveness of a restraint depend on the duration and the intensity as well as the market position of those involved.
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Abuse of a dominant market position
Due to its market position in many product areas, BASF is often subject to specific rules. In principle, the abuse of a dominant market position is prohibited in Germany, the E.U. and the United States, although with slight differences. Such abuse can, for example, be different treatment of customers without good cause (ban on discrimination), refusal to supply, selective supply, imposition of inadequate purchase/sales prices and conditions or tie-in arrangements without justification for the additional supply or service demanded.
The definition of a dominant market position as well as the limits within which a given conduct is still admissible depend on the circumstances of the individual case.
In the event of doubt in connection with antitrust regulations, the relevant legal department should be contacted at an early stage. BASF will provide regular information on issues of antitrust law.
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