Vertical Agreements And Competition Law

Vertical Agreements And Competition Law

Provided they do not contain specific restrictions (as defined in the category exemption regulations), a number of vertical agreements may benefit from the protection of class exemptions, avoiding the prohibition of Section 4. Below is a list of exemption regulations by category that may apply, among other things, to vertical agreements. Depending on the particular circumstances surrounding each individual case, some of the following regimes may or may not apply to vertical agreements: even in cases where a class exemption does not apply, a vertical agreement may nevertheless benefit from an individual exemption. The parties are authorized to conduct a self-assessment to determine whether the restrictive vertical competition agreement meets the requirements for the individual exemption. Like the EU competition regime, the conditions for individual exemption are: (i) the agreement must contribute to improving the production or distribution of products or to promoting technical or economic progress; (ii) it must give consumers an appropriate share of the resulting benefit; (iii) it should not impose restrictions on the companies concerned that are not necessary to achieve these objectives; and (iv) it should not allow the parties to eliminate competition on a substantial portion of the products concerned. This is not an alternative test and all individual exemption requirements must be met. Regulation (EC) No. 330/2010 [4] exempts vertical agreements from the prohibition in Article 101, paragraph 1 of the Treaty on the Functioning of the European Union, which meet the requirements for the exemption and do not contain so-called “strict” restrictions on competition. The main exception concerns vehicle distribution agreements which, until 31 May 2013, are subject to a three-year extension of the Council`s Regulation (EC) (EC) No. 461/2010 (Regulation (EC) No.

1400/2002 [5]. [6] Although the latter regulation is Regulation (EC) 330/2010 relating to agreements relating to the repair of motor vehicles and the distribution of spare parts from 1st It also complements Regulation 330 with three additional “hardcore” clauses in Article 101, paragraph 1, of the TFUE, which prohibits agreements between companies with the purpose or effect of restricting, preventing or distorting competition within the EU and which affect trade between EU Member States. This prohibition is relevant to all agreements between two or more companies, whether they are competitors. In addition, vertical agreements appear to be more effective in commercial activity. The most common vertical restrictions are: This glossary corresponds to the list of keywords used by the search engine. Each keyword is automatically updated by the latest EU and national jurisdictions of the e-Competitions bulletin and competition review. The definitions are included in the DG COMP glossary on EU competition policy concepts (© European Union, 2002) and the OECD glossary of competition rules (© OECD, 1993). For example, a consumer electronics manufacturer could have a vertical agreement with a retailer that would sell and promote the retailer`s products, possibly in exchange for lower prices. Such agreements could lead to a division of markets and/or the creation and maintenance of territorial restrictions.


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