Block Exemption Regulation Vertical Agreements 2010: What You Need to Know
The Block Exemption Regulation (BER) for vertical agreements was first introduced by the European Union (EU) in 1999, with the aim of creating a level playing field for businesses operating within the EU. In May 2010, the BER for vertical agreements was revised, leading to the introduction of the Block Exemption Regulation Vertical Agreements 2010.
Vertical agreements refer to agreements between businesses operating at different levels of the supply chain, such as between a manufacturer and a retailer. These agreements may involve price-setting, distribution and supply arrangements, and other aspects of competition.
The BER for vertical agreements provides an exemption from EU antitrust rules for certain types of vertical agreements that meet certain criteria. The purpose of the exemption is to promote efficiency and consumer welfare, while still protecting competition in the EU market.
The revised BER for vertical agreements in 2010 introduced a number of changes. One of the most significant changes was the introduction of a new de minimis threshold. This means that vertical agreements that have a low impact on competition and trade within the EU may be exempted from the application of Article 101 of the Treaty on the Functioning of the European Union (TFEU).
Under the revised BER for vertical agreements, the new de minimis threshold for market share is 30% for agreements that contain no hardcore restrictions of competition. This means that agreements between businesses that have a combined market share of less than 30% are exempt from the application of Article 101 TFEU, provided that they don’t contain any hardcore restrictions of competition.
Hardcore restrictions of competition are defined as those that have a significant negative impact on competition, such as price-fixing, territorial restrictions and certain types of non-compete clauses. These restrictions are not exempted under the BER for vertical agreements.
Another key change under the revised BER for vertical agreements was the inclusion of a new block exemption for certain types of distribution agreements. The new block exemption applies to agreements between non-competing businesses for the sale of goods and services, where the distributor operates at a different level of the supply chain than the supplier. The block exemption also applies to certain types of restrictions, such as those relating to the use of intellectual property rights and online sales.
In summary, the Block Exemption Regulation Vertical Agreements 2010 is an important regulation for businesses operating within the EU. It provides a framework for vertical agreements between businesses, while ensuring that competition within the EU market is protected. As a professional, it’s important to understand the key aspects of the regulation and how it impacts businesses in the EU market.