Vertical Agreement Block Exemption Regulation

In order to strengthen the supervision of parallel networks of vertical agreements with similar anti-competitive effects and covering more than 50% of a given market, the Commission may, by means of a Regulation, declare this Regulation inapplicable to vertical agreements which contain restrictions specific to the market in question, thereby restoring the full application of Article 101 of the Treaty to those agreements – 0/2010 of 20 April 2010, which expires on 31 May 2022 for vertical agreements, must ask what to do from that date. The Commission has just published a 233-page evaluation on the basis of which it will decide whether or not to decide on this evaluation (…) Beyond the 30% market share threshold, it cannot be considered that vertical agreements falling within the scope of Article 101(1) TFEU generally provide objective advantages of such a nature and size that they compensate for the disadvantages they cause to competition. At the same time, there is no presumption that those vertical agreements fall within the scope of Article 101(1) of the Treaty, or that they do not fulfil the conditions laid down in Article 101(3) of the Treaty. In view of the expiry of the Vertical Agreement Block Exemption Regulation, which was adopted on 31 October 2018, the Commission opened a review of the Block Exemption Regulation in order to decide whether it (…) In deciding whether to withdraw the benefit of this Regulation pursuant to Article 29 of Regulation (EC) No 1/2003, the anti-competitive effects which may result from the existence of parallel networks of vertical agreements with similar effects, which significantly limit access to or competition on a relevant market, shall be of particular importance. These cumulative effects may occur, for example, in the case of selective distribution or non-competition. Competition law complements the Geo-blocking Regulation, which entered into force in December 2018. However, competition law allows geo-blocking in certain (very limited) circumstances, while the Geo-blocking Regulation prohibits any passive restriction of sales in situations covered by the Regulation. This seems incompatible and the Commission should deal with it when revising the VBER. Article 101 of the Treaty on the Functioning of the European Union (“TFEU”) prohibits agreements and concerted practices between undertakings which restrict competition, unless the pro-competitive effects outweigh the anti-competitive effects, in accordance with the cumulative criteria set out in Article 101(3) TFEU.

The prohibition in Article 101 TFEU includes, inter alia, so-called `vertical` agreements, i.e.: Agreements concluded between two or more undertakings operating at different levels of the production or distribution chain and relating to the conditions under which the parties are authorised to buy, sell or resell certain goods or services. . . .