A&D UPDATE
8.06.2010Company: Amcham
From 1 June 2010 a block exemption for vertical agreements will be effective in the whole EU. This is a global exemption from the general prohibition of agreements which can restrict economic competition. The exemption summarises the criteria assuming that the risks of violating economic competition laws will be outweighed by the advantages that the relevant agreement or concerted practices will bring to consumers. The agreements meeting the criteria of the current legal regulation must be brought into compliance with the new regulation at the latest by 31 May 2011.
Affected subjects:
The block exemption is relevant for all agreements between producers or service providers on the one part and distributors or sellers on the other part.
Key changes:
To utilise the block exemption, it is necessary that neither the seller nor the buyer exceeds a 30% market share in the relevant market (so far this criterion has applied only to the seller).
Online sales must not be restricted in any way. For example, online sales to certain territories must not be prohibited so the customer can thus choose in which country he will buy the respective goods. The volume of sales must not be limited either.
Double prices of products determined according to the manner of sale (online/offline sale) are also prohibited. Those sellers selling to brick-and-mortar shops for lower prices than to online distributors must unify the prices.
Arrangement on the determination of sale price will be acceptable in specific cases. It can concern e.g., putting the new product on the market when the producer and the distributor can agree on the rules for determination of the initial sale price for a limited period to support the sale of a new product.
