Unlike the horizontal agreements of Section 3(3) (which are PRESUMED to have an appreciable adverse effect), VERTICAL agreements under Section 3(4) of the Competition Act, 2002:

Section 3(4) of the Competition Act deals with VERTICAL agreements (tie-in, exclusive supply, exclusive distribution, refusal to deal, resale price maintenance). Unlike the horizontal agreements of Section 3(3), which are PRESUMED to have an appreciable adverse effect on competition, vertical agreements are NOT subject to that statutory presumption - they are examined under the RULE OF REASON, which considers whether, on a careful analysis of the market effects, the agreement appreciably harms competition (pro-competitive efficiencies count). The presumption/rule-of-reason divide between horizontal and vertical restraints is a central doctrinal point of Indian competition law.