Delchev & Partners

“VERTICAL” IN THE SPOTLIGHT: AGENCY (DEFINITION AND TEMPORARY TRANSFER OF OWNERSHIP)  GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? In the previous DLC countdown, it was highlighted that EU competition law applies a particular definition of agency. Not every agent in the sense of commercial or business law will be treated as an agent for EU competition law purposes. The agency test under EU competition law is met if the agent assumes no or only insignificant risks associated with the agreements concluded or negotiated on behalf of the principal. If the agency test is met, … Continue reading →

AGENCY (LEGAL TEST)  GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? The particular nature of agency agreements triggers the application of a specific competition law regime. This regime is based on a split between (i) the role assumed by the agent acting as an intermediary of the principal (i.e. where he is trying to secure transactions for the principal) and (ii) the position of the agent as a provider of agency services to principals (i.e. where he seeks appointments as an agent). With regard to the second aspect, the agent acts as an undertaking that … Continue reading →

“VERTICAL” IN THE SPOTLIGHT: OVERVIEW OF DISTRIBUTION SYSTEMS  GETTING READY FOR 1 JUNE 2022   WHAT? Before diving into the individual restrictions of competition that typically appear in vertical agreements, it is useful to first focus on the main types of distribution systems. Such types include exclusive distribution, non-exclusive or free distribution, selective distribution, franchising and agency. Suppliers can opt for a single system that covers the entire EEA, but may also combine distribution systems. This is for instance the case where a supplier applies non-exclusive distribution in certain parts of the EEA and selective distribution in other parts. An … Continue reading →

EUROPEAN COMPETITION RULES RELATING TO DISTRIBUTION, AGENCY AND SUPPLY AGREEMENTS ABOUT TO CHANGE  COMMENCEMENT OF DLC COUNTDOWN NEWSLETTERS GETTING READY FOR 1 JUNE 2022   WHAT? No business wants to run the risk that its distribution, agency or supply agreements (also known as “vertical agreements”) are found to be unlawful and invalid. Even worse, no business wants to be trapped by a competition authority and pay fines or be sued by its clients for private damages because of such unlawfulness. Compliance with competition law is key and the only sensible way forward. The most efficient way to secure the validity … Continue reading →