An agreement between undertakings relating to the conditions under which they specialise in the production of a narrow or specific range of goods and/or services. Agreements on specialisation can contribute to improving the production or distribution of goods, because the undertakings concerned can concentrate on the manufacture of certain products and thus operate more efficiently and supply the products more cheaply. Specialisation agreements are divided into agreements whereby one participant gives up the manufacture of certain products, or provision of certain services in favour of another participant (unilateral specialisation); agreements whereby each participant gives up the manufacture of certain products, or provision of certain services in favour of another participant (reciprocal specialisation); and agreements whereby the participants under- take jointly to manufacture certain products, or provide certain services (joint production). The issue is covered by a specific block exemption regulation.
Source: Glossary of terms used in EU competition policy, Antitrust and control of concentrations, European Commission, 2002