Vertical Agreements Block Exemption

“vertical restriction,” a restriction of competition in a vertical agreement within the scope of Article 101, paragraph 1, of the Treaty; Detailed information on vertical agreements and category exemptions in accordance with the Press Release is presented below. The category of agreements that can normally be considered the terms of Article 101, paragraph 3 of the treaty includes vertical agreements for the purchase or sale of goods or services where these agreements are concluded between non-competing companies, between specific competitors or specific associations of commodity traders. It also includes vertical agreements that contain subsidiary provisions relating to the transfer or use of intellectual property rights. The term “vertical agreements” should include corresponding concerted practices. Practical measures: Companies should consider reviewing their existing vertical agreements to determine if they meet the requirements of the new VABE. Otherwise, companies will have to review the agreements individually to determine whether they restrict competition and, if so, whether they meet the individual exemption criteria. The new vertical agreements should be carefully developed to ensure that they benefit, as far as possible, from the VABE. In order to strengthen the monitoring of parallel networks of vertical agreements with similar anti-competitive effects and covering more than 50% of a given market, the Commission may, by regulation, declare this regulation unenforceable to vertical agreements that contain specific restrictions on the market in question and thus restore the full application of Article 101 of the Treaty to such agreements. , 3. The exemption in paragraph 1 applies to vertical agreements that contain provisions relating to the transfer of intellectual property rights to the purchaser or the purchaser`s use of intellectual property rights, provided that these provisions are not the primary purpose of these agreements and are directly related to the use, sale or resale of goods or services by the purchaser or his or her customers. The exemption applies provided that these provisions do not contain, for contractual goods or services, competition restrictions with the same purpose as vertical restrictions that are not exempt under this Regulation. There are 5 restrictions that make the entire agreement excluded from the interest of the settlement, even if the supplier and buyer`s market share is less than 30%. They are considered severe restrictions on competition because they can harm consumers.

In most cases, they are prohibited and the vertical agreements they contain are unlikely to meet the conditions of Article 101, paragraph 3: 3. By derogation from paragraph 1, (b) the section 2 exemption applies to any direct or indirect obligation that, after the termination of the contract, induces the purchaser not to sell or resell goods or services if the following conditions are met: 2. When a company covered in paragraph 1, in a multi-party agreement, purchases contracting goods or services from a contractor and sells the contracting goods or services to another company that is a party to the agreement. , the market share of the first company must apply for the market share threshold set out in this paragraph, both as a buyer and as a supplier, in the application of the Article 2 exemption.

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