DLC – Countdown 22 – Vertical in the spotlight: E-Commerce online marketplace bans (EN)

“VERTICAL” IN THE SPOTLIGHT: E-COMMERCE: RESTRICTING THE USE OF ONLINE MARKETPLACES / ONLINE MARKETPLACE BANS GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? An “online marketplace” is an e-commerce site that offers multiple products from many different sellers which connects merchants and potential customers with a view to enabling direct purchases. Over the last decade online marketplaces (such as Amazon and eBay) have become an important sales channel for both suppliers and retailers selling their products online. Despite the significant benefits that result from online marketplaces in facilitating the ability of retailers to sell their … Continue reading

DLC – Countdown 21 – Vertical in the spotlight: E-Commerce online promotions and active sales (EN)

“VERTICAL” IN THE SPOTLIGHT: E-COMMERCE ONLINE PROMOTIONS AND ACTIVE SALES GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? Digitalization and innovation of technology have been a focal point over the last decade in the development of the modern world. Online marketing and sales have become an ever more powerful tool to reach a variety of customers. Accordingly, online promotions have gained more attention compared to 2010, when the current Vertical Block Exemption Regulation (the “VBER”) was introduced. In the draft VBER and Vertical Guidelines, the European Commission has revisited the rules concerning online promotions and … Continue reading

DLC – Countdown 20 – Vertical in the spotlight: Selective distribution (reverse protection) (EN)

“VERTICAL” IN THE SPOTLIGHT: SELECTIVE DISTRIBUTION REVERSE PROTECTION GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? As explained in prior countdowns (see DLC countdown 12, DLC countdown 13 and DLC countdown 14) the notions of “active sales” (to actively target individual customers) and “passive sales” (to respond to unsolicited requests from individual customers) are pivotal to the world of vertical agreements. In principle, buyers should be allowed to actively and passively sale as they see fit. This is why under the Vertical Block Exemption Regulation (the “VBER”), restrictions of the territory into which, or the … Continue reading

DLC – Countdown 19 – Vertical in the spotlight: Selective distribution (General) (EN)

“VERTICAL” IN THE SPOTLIGHT: SELECTIVE DISTRIBUTION GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? One of the common types of distribution agreements are selective distribution agreements. In a system of selective distribution, the supplier undertakes to sell the contract goods or services, either directly or indirectly, only to distributors selected on the basis of specified criteria and these distributors undertake not to sell such goods or services to unauthorised distributors within the territory reserved by the supplier to operate that system. By way of selective distribution, a supplier thus creates a network of authorised distributors. … Continue reading

DLC – Countdown 18 – Vertical in the spotlight: Dual distribution information exchange article 2.7.(EN)

“VERTICAL” IN THE SPOTLIGHT: DUAL DISTRIBUTION INFORMATION EXCHANGE (ARTICLE 2(7) VBER) GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? Dual distribution occurs where a supplier sells goods or services both directly and through independent distributors, thereby competing with these independent distributors on the downstream market. A classic example would be that of a manufacturer of a clothing brand who sells these clothes in his own stores but also relies upon independent retailers to sell the clothes in their stores. Dual distribution is hardly a new phenomenon. Already in 2010, it was applied by manufacturers for … Continue reading

DLC – Countdown 17 – Vertical in the spotlight: Dual distribution information exchange (EN)

“VERTICAL” IN THE SPOTLIGHT: DUAL DISTRIBUTION INFORMATION EXCHANGE (ARTICLE 2(5) VBER) GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? Dual distribution occurs where a supplier sells goods or services both directly and through independent distributors, thereby competing with these independent distributors on the downstream market. A classic example would be that of a manufacturer of a clothing brand who sells these clothes in his own stores but also relies upon independent retailers to sell the clothes in their stores. Dual distribution is hardly a new phenomenon. Already in 2010, it was applied by manufacturers for … Continue reading

DLC – Countdown 16 – Vertical in the spotlight: Dual distribution (market share threshold) (EN)

“VERTICAL” IN THE SPOTLIGHT: DUAL DISTRIBUTION MARKET SHARE THRESHOLD GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE     WHAT? Dual distribution occurs where a supplier sells goods or services both directly and through independent distributors, thereby competing with these independent distributors on the downstream market. A classic example would be that of a manufacturer of a clothing brand who sells these clothes in his own stores but also relies upon independent retailers to sell the clothes in their stores. Dual distribution is hardly a new phenomenon. Already in 2010, it was applied by manufacturers for various … Continue reading

DLC – Countdown 15 – Vertical in the spotlight: Dual distribution (Extension of exception to wholesalers and importers) (EN)

“VERTICAL” IN THE SPOTLIGHT: DUAL DISTRIBUTION EXTENSION OF EXCEPTION TO WHOLESALERS AND IMPORTERS GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE     WHAT? Dual distribution occurs where a supplier sells goods or services both directly and through independent distributors, thereby competing with these independent distributors on the downstream market. A classic example would be that of a manufacturer of a clothing brand who sells these clothes in his own stores but also relies upon independent retailers to sell the clothes in their stores. Dual distribution is hardly a new phenomenon. Already in 2010, it was applied … Continue reading

DLC – Countdown 14 – Vertical in the spotlight: Active sales restrictions (rolling over prohibition) (EN)

“VERTICAL” IN THE SPOTLIGHT: ACTIVE SALES RESTRICTIONS ROLLING OVER PROHIBITION GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE     WHAT? Classic notions in the world of vertical agreements are those of “active sales” and “passive sales”. Active sales involve some form of active targeting of a particular customer group or territory. Passive sales consist of transactions in response to unsolicited requests from individual customers without having initiated the sales by means of active targeting of such customers. In order to protect efforts and investments made by exclusive, but non-selective distributors, the block exemption regime accepts under … Continue reading

DLC – Countdown 13 – Vertical in the spotlight: Active sales restrictions (parallel imposition) (EN)

“VERTICAL” IN THE SPOTLIGHT: ACTIVE SALES RESTRICTIONS PARALLEL IMPOSITION REQUIREMENT GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? Classic notions in the world of vertical agreements are those of “active sales” and “passive sales”. Active sales involve some form of active targeting of a particular customer group or territory. Passive sales consist of transactions in response to unsolicited requests from individual customers without having initiated the sales by means of active targeting of such customers. In order to protect efforts and investments made by exclusive, but non-selective distributors, the block exemption regime accepts under strict … Continue reading