Group Purchasing Organization

Group purchasing organisations (‘GPOs’) are organisations that negotiate and jointly purchase inputs from sellers on behalf of a group of buyers. Joint purchasing can take place through jointly controlled or owned companies, cooperatives, contract, or informal arrangements. Other terms for arrangements identical or similar to GPOs include ‘joint purchasing organisations’, ‘joint purchasing joint ventures’, ‘purchasing alliances’, and ‘joint purchasing agreements’. Whereas GPOs are commonly pro-competitive, they must be distinguished from anti-competitive buyer cartels. Their anti-competitive effects and pro-competitive efficiencies, as well as their organisation, determine the legality of GPOs.