Background

Economic theory of vertical restraints

Economic theory and competition law

Should distributors have more protection?

Vertical restraints put to the test of economic analysis

Structure of distribution law - Book plan

General bibliography

Introduction

Localizing the anticompetitive effects

Effect on trade between Member States

Scope ratione loci

Concept of an undertaking

Intra-group agreements

Scope ratione personae

Applicability of competition law to vertical agreements

Definition of the relevant market

Anticompetitive object or effect

Appreciability threshold

Concept of agreement and concerted practice

Prohibition of vertical restraints

Block exemptions

Individual exemptions and rule of reason

Exemption of vertical restraints

Control of vertical restraints

Prohibition

Exoneration

Restrictive agreements

Principle

Applications

Abuse of dominant position

Exclusive purchase/Exclusive supply

Resale outside network

International agreement

Exclusive distribution agreements

Manufacturer's guarantee

Protection of the brand

Protecting the network against third parties

Relations between the parties

Selective distribution

Hardcore restrictions

Individual exemptions

Rule of reason

Prohibition of restrictive agreements and individual exemptions

Distribution of new motor vehicles : Regulation No 330/2010

After-sales : Regulation No 461/2010

Block exemption

Motor vehicle distribution agreements

Merger control

Franchising

Commercial agency and competition

EU harmonization

International agency

Commercial agents

This book provides a wide-ranging review of the European rules relating to distribution: exclusive purchase and exclusive supply, exclusive and selective distribution, motor vehicle distribution, franchises, commercial agents.

European Distribution Law

With an exclusive purchase clause the franchisee agrees to obtain supplies exclusively from the franchisor. This exclusive purchase obligation covers two possibilities: the franchisor can impose an exclusive supply obligation for the contract goods or services, and it may be that the supplier will require resellers to use a designated supply source for the purchase of equipment or improvements to premises. Regulation No 2022/720 classifies this type of clause as a non-compete obligation . Non-compete obligations limited to five years and which are now tacitly renewable, and purchase obligations amounting to less than 80% of the franchisee supplies, regardless of duration, are lawful, provided that the supplier's or the reseller's market share does not exceed 30%. Furthermore, the non-compete obligation falls outside Article 101(1) when the obligation is necessary to maintain the common identity and reputation of the franchised network. The duration of the non-compete obligation is also irrelevant as long as it does not exceed the duration of the franchise agreement itself .

Reg. No 2022/720 of 10 May 2022, Art. 1(1)(f).

Vertical Restraints Guidelines of 2022, pt 166.

Exclusive purchase clause

97. Exclusive purchase clause