Translation of "Production agreement" in German

C. We will arrange production based the agreement.

A production agreement may allow the parties to achieve economies of scale or scope that they could not achieve individually.

Competition between the parties to a production agreement can be directly limited in various ways.

The proposal is moving in the right direction in that it provides measures to stimulate initiatives promoting European production by agreement with the Member States and producer organizations.

I think that it is crucial that the European Union exerts considerable pressure in order to have Korea make a voluntary production agreement in addition to everything that has already been discussed in terms of rules designed to prevent this kind of distortion to competition.

Analysis: If Companies A and B share all or most of their variable costs, this production agreement could lead to a direct limitation of competition between them.

Conversely, in the context of a production agreement the sharing of data which is not necessary for producing jointly, for example the exchange of information related to prices and sales, is less likely to fulfil the conditions of Article 101(3).

Generally, a production agreement is more likely to lead to restrictive effects on competition in a concentrated market than in a market which is not concentrated.

In both scenarios the agreement on output or prices will not be assessed separately, but in the light of the overall effects of the entire production agreement on the market.

Also, a joint distribution agreement that is necessary for the joint production agreement to take place in the first place is less likely to restrict competition than if it were not necessary for the joint production.

The joint production agreement with regard to Z might reduce Company B's incentives to do so as the joint production might be used for side payments and limit the probability of Company B selling product X (as Company A is likely to have control over the quantity of Z purchased by Company B from the joint venture).

In the analysis of whether the parties to a production agreement have market power, the number and intensity of links (for example, other co-operation agreements) between the competitors in the market are relevant to the assessment.

However, the production agreement could only meet the criteria of Article 101(3) if the parties provided substantiated evidence that the efficiency gains would be passed on to consumers to such an extent that they would outweigh the restrictive effects on competition.

Similarly, setting prices jointly will not be considered indispensable if the production agreement does not also involve joint commercialisation.

Moreover, information exchange can be part of another type of horizontal co-operation agreement (for example, the parties to a production agreement share certain information on costs).

A production agreement is more likely to lead to a collusive outcome if prior to the agreement the parties already have a high proportion of variable costs in common, as the additional increment (that is to say, the production costs of the product subject to the agreement) can tip the balance towards a collusive outcome.

A collusive outcome can result in particular (but not only) from commonality of costs or an exchange of information brought about by the production agreement.

Alternatively, a production agreement can lead to a collusive outcome or anti-competitive foreclosure by increasing the companies' market power or their commonality of costs or if it involves the exchange of commercially sensitive information.

A production agreement between parties with market power can have restrictive effects on competition if it increases their commonality of costs (that is to say, the proportion of variable costs which the parties have in common) to a level which enables them to collude.

Such agreements can be governed by a single contract, joint venture, production sharing agreement, or other overarching legal agreement.

For the purposes of Articles 8 and 9, point (c) of Article 11(2), and Articles 21 and 26, any body, entity or holder of rights derived from an original award before the entry into force of this Regulation by a sovereign Government other than Iran, of a production sharing agreement shall not be considered an Iranian person, entity or body.

For the purposes of Articles 8 and 9, point (b) of Article 17(2), and Articles 30 and 35, any body, entity or holder of rights derived from an original award before 27 October 2010 by a sovereign Government other than Iran, of a production sharing agreement shall not be considered an Iranian person, entity or body.

Similarly, a production agreement in a concentrated market may increase the risk of a collusive outcome even if the parties only have a moderate combined market share.

The parties could use the production agreement to increase the price of that common important input for their products in the downstream market.

Similarly, information exchanges that form part of horizontal co-operation agreements are also more likely to fulfil the conditions of Article 101(3) if they do not go beyond what is indispensable for the implementation of the economic purpose of the agreement (for example, sharing technology necessary for an R & D agreement or cost data in the context of a production agreement).