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Eu Vertical Agreements

by on Sep.20, 2021, under Uncategorized

The vertical block exemption assumes that the agreement in question is vertical (i.e. the parties operate at different levels of the market “for the purposes of the agreement”). Parties to an agreement that compete in other product markets, but not in the contract product market, may benefit from the vertical block exemption, unless they are both “potential real competitors” in the market that includes the contract products. To what extent is private performance possible? Can non-parties to agreements that contain vertical restraints obtain judgments or orders of omission and claim damages? Can the parties claim damages themselves? What are the remedies? How long should a company expect a private enforcement action? The de minimis Notice provides that in the absence of certain essential restrictions, such as price fixing for resale or clauses granting absolute territorial protection and in the absence of parallel networks of similar agreements, the Commission does not expect vertical agreements to have a `significant` impact on competition, provided that the parties` market shares in the relevant products do not exceed 15%. Although the de minimis Notice is binding on the Commission itself, it does not bind Member States` courts or competition authorities in the application of Article 101, as confirmed by the Court of Justice of the European Union (ECJ) in Expedia. The vertical guidelines contain guidelines on advance payments for access (fixed fees paid by suppliers to distributors to access their distribution network and remunerate services provided by retailers) and category management agreements (under which the distributor entrusts the supplier with the marketing of a product category, including the supplier`s products and the products of the supplier`s competitors). These agreements are generally covered by the Vertical Block Exemption Regulation where the market share of the supplier and the buyer does not exceed 30%. Vertical agreements are agreements between companies operating at different levels of the production or distribution chain, for example. B an agreement between a producer and a distributor. Under current EU law, companies must themselves assess the compliance of their vertical agreements with EU competition law, which prohibits agreements restricting competition under Article 101(1) of the Treaty on the Functioning of the European Union. . .


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