Distribution Agreements Eu Law

Among the main restrictions most relevant for a selective distribution agreement are: this rule enshrines one of the essential functions of competition law, namely the protection of consumers against anti-competitive agreements. Distribution agreements, especially exclusive ones, often include prohibitions on competition. Such provisions may be permitted by vertical regulation, but here too there are restrictions depending on the circumstances. A selective distribution agreement is usually used by a supplier to maintain better control over the resale of its products. In such a system, the supplier undertakes to supply only those distributors who meet certain minimum criteria. In return, distributors undertake to supply only other distributors who are in the authorised selective distribution system or to the final consumer. The selection criteria used generally require that products be sold only through points of sale that give a certain image or that the trader assume certain obligations, such as staff training or after-sales services. Selective distribution agreements are essentially aimed at achieving a uniform standard and a uniform quality of service at the points of sale where products are sold. Vaber automatically exempts vertical agreements from the general prohibition referred to in Article 101: this quick guide provides an overview of the treatment of selective distribution agreements under Community competition law. The advantage of VABER is generally not available for distribution agreements concluded by actual or potential competitors.

In this case, a potential competitor is a party that could enter the market quickly (within about 12 months) in response to a small but sustainable price increase. There is an important qualification for the exclusion of competing parties under the block exemption. The block exemption applies where competitors conclude a non-reciprocal distribution agreement (i.e. only one party distributes for the other) and the parties generally have to check for themselves whether their agreements are covered by Article 101(3), but the Commission has also adopted `block exemption regulations` for certain common types of trade agreements – clear rules on conditions, which must be fulfilled and include the conditions that may be included in an agreement implementing Article 101(3). The distribution block exemption (known as the vertical agreement block exemption (vaber) is one of the main block exemption regulations under Community competition law in terms of the number of agreements it applies (distribution agreements and other supply agreements are common). In the field of exclusive distribution, this quarter there was an interesting decision by the Paris Court of Appeal that reminds us of the importance of carefully anticipating the end of the contract and the end of the resulting exclusivity obligation. Since June 1, 1995 had a supplier (…) However, the Court has also confirmed17 that a clause prohibiting authorised distributors, in a selective distribution system, from using `recognisable` third-party platforms for the sale of the products in question on the internet may be compatible with the vaber, provided that certain criteria are met, in particular the clause that if a distribution agreement contains a `hardcore` restriction, it will not benefit from the guarantees contained in EU competition rules, including the block exemption for vertical agreements. .