What is a Horizontal Restraint of Trade?

While there are several established types of horizontal restraint, any situation that meets the following elements may be illegal.

• Agreement – Was there an agreement between or among market participants?
• Restraint– Was there an identifiable restraint of trade? If so, was the restraint:
  • Naked with no pro-competitive justification? If so, it is per se illegal.
  • Naked with a pro-competitive justification? Then apply the quick-look rule of reason.
  • Not a naked restraint? Then the rule of reason applies.

Remember, there is no requirement that a business have extensive market power for conduct to be illegal under 1.