Entente is a pact or agreement that is normally made between countries, political partners or groups of companies, to achieve a common goal or avoid a certain situation.
Any type of agreement, even between two individuals and under the umbrella of private law, can be called an entente.
Entente is a word that comes from French. Although entente is known as a pact between governments or countries, derived from its recognition through the triple entente, this word is synonymous with agreement, pact or agreement.
Although any type of agreement can be called an entente, it is obvious that this word is normally used for those agreements between countries with an objective to be achieved.
The best known agreement that has received the entente title has been, as we mentioned before, the triple entente.
This alliance or agreement was signed by France, Russia and Great Britain before World War I. This alliance was joined by more countries such as Serbia, Japan, Bulgaria, Romania, China and the USA.
Its germ was known as entente cordiale. This agreement signed between Great Britain and France served to regulate their colonial territorial expansion and agree on non-aggression between these two countries. This agreement finally led to the so-called triple entente.
The triple entente was carried out with the aim of avoiding conflicts for the allied countries, especially with Germany. Finally, the tensions led to World War I between the Triple Entente and the Triple Alliance.
The latter made up of Germany, Austria and Italy. Although history has differentiated the sides that fought in World War I with these two names, both concepts (entente and alliance) meant the same thing: An agreement between countries that pursued common goals.
Agreement between companies
In the legal world, the entente is the most usual form for cooperation or collaboration between private companies that seek to limit free competition.
It must be an agreement between two or more companies or group of companies. The agreements reached by these companies may be considered prohibited if they ultimately directly threaten free competition.
The companies form an alliance under an agreement, called an entente, to bet on a common conduct in the face of the functioning of the market. However, the fact that these alliances are reached by companies does not mean that they lose their independence, both legal, economic and managerial.
Most common objectives of these business ententes:
- Harmonize the market.
- Delimit joint actions before new market competitors.
- Limit competition, thus improving the market share and profits of the companies that signed the agreement.
- exercise a common policy.
- Relevantly affect the market with their actions