European Commission publishes new rules and guidelines on distribution and supply agreements and internet selling
This post was written by Edward Miller.
The final release of the Commission's new block exemption on vertical restraints and accompanying Guidelines (see ec.europa.eu/competition/antitrust/legislation/vertical.html) confirms that the Commission has made few changes, and in many places has simply updated the law to reflect case law of the European Court since the last version of the exemption was adopted in 2000. Although the Commission retains its enthusiasm for liberalising internet selling, the changes will not satisfy the ambitions of internet sellers for a European free for all on the Internet. The Commission's desire to curb buyer power by requiring that both buyer's and seller's market share must now not exceed thirty per cent to obtain the benefit of the exemption in all cases, will create some new compliance issues for firms which either are, or trade with powerful buyers. But no need to panic as the Commission has generously allowed a one year transitional period to get into compliance.
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