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Block Exemption On Vertical Agreements

The VBER and its Guidelines exempt certain vertical agreements from the prohibition in Article 101(1) TFEU and contain certain `basic` restrictions against certain vertical practices. `vertical restraint` means a restriction of competition in a vertical agreement which falls within the scope of Article 101(1) of the Treaty; The exemption provided for in Article 2 shall not apply to vertical agreements which, directly or indirectly, isolated or combined with other factors subject to the control of the parties, have as their object: Article 101(1) TFEU prohibits agreements which may affect trade between States of the Union and prevent, restrict or distort competition. However, in accordance with Article 101(3) TFEU, agreements which create advantages sufficient to offset anti-competitive effects are exempted from this prohibition. 2. The exemption provided for in Article 2 shall remain applicable if the threshold of total annual turnover is exceeded by more than 10% for a period of two consecutive financial years. • the parties must conclude a vertical agreement (see below); the supplier`s market share covers all goods or services supplied to vertically integrated distributors for the purpose of sale; Selective distribution agreements are appreciated in a large number of sectors, particularly with regard to cosmetics, sporting goods and household appliances. The most frequently reported restrictions by national competition authorities in this regard are restrictions on internet sales, sales on market platforms, price comparison tools, keyword offers, double pricing, sales to retailers and cross-selling. The public consultation showed that stakeholders are generally of the view that selective distribution agreements should continue to be excluded from blocking, as they protect brand value, stakeholder investments and the development of additional distribution services. `vertical agreement` means an agreement or concerted commercial practice between two or more undertakings, each of which operates at another level of the production or distribution chain for the purposes of the agreement or concerted commercial practice, and refers to the conditions under which the parties may buy, sell or resell certain goods or services; In accordance with Article 1a of Regulation No 19/65/EEC, the Commission may, by means of a Regulation, declare that parallel networks of similar vertical restraints covering more than 50% of a relevant market do not apply to vertical agreements which contain restrictions specific to that market. 1. In accordance with Article 101(3) of the Treaty and subject to the provisions of this Regulation, it is heded that Article 101(1) of the Treaty shall not apply to vertical agreements.

3. By way of derogation from point (b) of paragraph 1, the exemption provided for in Article 2 shall apply to any direct or indirect obligation which, after termination of the contract, induces the buyer not to manufacture, buy, sell or resell goods or services if the following conditions are met: The European Commission has also published guidelines on vertical restraints. These describe the approach taken to vertical agreements that are not covered by the Regulation. Vertical agreements include distribution agreements (exclusive and selective), franchising, supply and agency agreements between non-competitors (i.e. those that do not compete on the market for products covered by the agreement). . . .