In some cases, certain types of agreements do not automatically fall within the scope of Article 101 TFEU(e.B. In addition, vertical agreements appear to be more effective in commercial activities. The most common vertical restraints are: (a) excluding providers of online intermediation services from the benefits of the Safe Harbour if they have a hybrid function, i.e. when they sell goods or services in competition with undertakings for which they provide online intermediation services (Article 2(7)). It is only if a contextual assessment reveals a `sufficiently harmful` effect on competition (or the absence of credible successor virtues) that an agreement can be legally classified as `by object` within the meaning of Article 101(1) TFEU. [10] On the 17th. In June 2021, the UK Competition and Markets Authority (CMA) published a consultation paper proposing recommendations for the UK`s approach to vertical agreements. Responses to the consultation will feed into the CMA`s final recommendation to the Secretary of State on whether to replace the VBER retained when it expires on May 31, 2022. (c) the creation of an additional but more limited safe harbour for dual distribution where the supplier and its distributors have a combined retail market share of more than 10 % but still do not exceed the 30 % market share threshold set out in Article 3 of the DBERBERber Regulation. In such a case, all aspects of the vertical agreement remain exempt, with the exception of the exchange of information between the parties to the vertical agreement, which must be assessed in accordance with the rules applicable to horizontal agreements (Article 2(5)). A vertical agreement is covered by this Regulation where neither the supplier nor the buyer of the goods or services has a market share exceeding 30 %.

For the supplier, it is its market share in the relevant supply market, that is to say, the market on which it sells the goods or services, which is decisive for the application of the block exemption. For the buyer, his market share on the relevant purchase market, that is to say, .dem market on which he purchases the goods or services, is decisive for the application of the Regulation. If it is confirmed that the parties are active at different levels of trade for the purposes of an agreement and that the agreement has an “impact on trade”, the procedure for assessing the vertical arrangement under Article 101 TFEU is broadly as follows: the current Block Exemption Regulation expires on 31 May 2022. The VBER and the vertical guidelines are part of the EU legal framework that regulates so-called “vertical” agreements: these are concluded by companies at different levels of the supply chain and allow the parties to the agreement to guarantee a “path to the market” for goods and services. Vertical agreements are the cornerstone of DISTRIBUTION and procurement agreements in the EU and are among the most common trade agreements that must comply with EU competition law. As a result, the Block Exemption Regulation and the Vertical Guidelines have played a crucial role in providing undertakings with an automatic antitrust authorisation system for vertical agreements, provided that they are below the market share thresholds and comply with the other conditions and guidelines laid down in the Block Exemption Regulation and the Guidelines respectively. Vertical. Vertical agreements which fulfil the conditions for exemption and do not contain `hardcore restrictions` of competition are exempted by Regulation (EC) No 330/2010 [4] from the prohibition laid down in Article 101(1) TFEU. The main exception concerns motor vehicle distribution agreements which are subject to Regulation (EC) No 1400/2002 [5] as part of a three-year extension granted by Regulation (EC) No 461/2010 until 31 May 2013.

[6] Although the latter Regulation applies Regulation (EC) No 330/2010 from 1 June 2013 to agreements on the repair of motor vehicles and the distribution of spare parts, it also complements Regulation No 330 with three additional “hardcore restriction clauses” for the evaluation of vertical agreements (including the European Commission`s block exemption regulations on vertical agreements and vehicle distribution). ), Article 101(1) TFEU prohibits agreements between undertakings which have as their object. or the effect of restricting, preventing or distorting competition within the EU that affects trade between EU Member States[3]. This prohibition applies to all agreements between two or more undertakings, whether competing or not. A vertical agreement is a term used in competition law to refer to agreements between companies at different levels of the supply chain. For example, a consumer electronics manufacturer could enter into a vertical agreement with a retailer under which the retailer would promote its products in exchange for lower prices. Franchising is a form of vertical agreement that falls within the scope of Article 101 of EU competition law. [1] The Regulation applies to all vertical restraints, with the exception of those mentioned above. However, it lays down specific conditions for 3 vertical restraints: dual distribution includes situations in which a supplier sells its goods or services not only through independent distributors (e.B.

retailers), but also directly to final customers who are in direct competition with its independent distributors. The increase in online sales – especially via suppliers` own online shops – has led to a significant increase in these cases of double selling. Whether a vertical agreement actually restricts competition and, if so, whether the benefits outweigh the anti-competitive effects often depends on the structure of the market. Vertical agreements are widely accepted because they raise fewer competition concerns than horizontal agreements. Horizontal agreements are concluded between two current or potential competitors. Conclusion The Commission`s assessment of the Exemption Regulation by the Competition Exemption Regulation rule and the Vertical Guidelines strongly suggests that the Commission will not let the current regime expire, as it has made a significant contribution to legal and commercial certainty in the area of distribution law and other vertical agreements. However, the Commission`s assessment to date shows that the current Guidelines for the Block and Vertical Exemption Regulation do not sufficiently take into account important digital developments, such as the rapid growth of online sales and the growing importance of online marketplaces as a form of distribution. The Commission`s impact assessment and public consultation questionnaire (expected by the end of 2020) will provide increasingly clear information on the Commission`s direction, but it is expected that the above key issues will remain key to ensure that the system fulfils its objective. The revised draft Block Exemption Regulation (Article 4(b)) introduces the possibility of joint exclusivity, which allows a supplier to designate more than one exclusive distributor in a given territory or for a specific group of customers. The draft revised vertical guidelines provide that the number of designated distributors should be determined in relation to the assigned territory or group of clients in order to ensure a certain volume of business that sustains their investment efforts. Paragraph 102 states that the number of exclusive distributors should be limited to a “limited number” and should not be a “large number”.

They warn that exclusive distribution “should not be used to protect a large number of operators from competition outside the exclusive territory, as this would lead to foreclosure of the internal market”. In practice, it can be difficult to assess how many dealers are authorised given the volume of business in a given territory and there is a risk of different interpretations in the Member States. There is more flexibility compared to other vertical agreements. For example, the following types of agreements under the block exemption are not considered to be “hardcore restrictions” (they are referred to as “non-essential agreements”): The DDPER provides parties to vertical agreements (i.e. agreements between companies operating at different levels of the supply chain) with greater certainty as to the compatibility of their agreements with Article 101, paragraph 1 of the operating contract of the European Union (TFEU); by creating a Safe Harbor exception. Parties may include contractual restrictions or obligations in vertical agreements to protect an investment or simply to ensure day-to-day business operations (e.g. B, distribution, supply or purchasing agreements). (b) limit the current safe harbour for dual distribution to cases where the parties` overall retail market share does not exceed 10 %, in line with the market share threshold for agreements between competitors used in the de minimis Notice (Article 2(4)). . .

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