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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 →

DLC – Countdown 12 – Vertical in the spotlight: Active sales restrictions (exclusivity condition) (EN)

“VERTICAL” IN THE SPOTLIGHT: ACTIVE SALES RESTRICTIONS EXCLUSIVITY CONDITION 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. More concretely, if a distributor sends a publicity letter or mail to a particular customer, he is engaging in active sales … Continue reading →

Repeal of personal income tax on bank deposits interest

Repeal of personal income tax on bank deposits interest   The final personal income tax on bank deposits interest has been repealed pursuant to an amendment published in State Gazette No. 17/01.03.2022.   Repeal of final tax on bank deposits interest Bank deposits interest income received by natural persons was subject to a final tax on the gross interest income at the rate of 8%. The repeal of the interest tax was part of the tax policy plan of the new coalition government and by virtue of the latest statutory amendments the final tax was indeed abolished.   Tax exemption … Continue reading →

Changes to tax on employee benefits expenses

2022 Changes to tax on employee benefits expenses   After discussing various alternatives for changing or even abolishing the tax on expenses related to the private use of company assets by employees, often referred to as “weekend tax”, the Bulgarian Parliament has finally settled on reducing the tax pursuant to an amendment published in State Gazette No. 17/01.03.2022.   Expenses related to the private use of company assets The reduced tax rate concerns only in-kind expenses related to the private use of owned or rented company assets by its employees, directors and shareholders who work in the company. The in-kind … Continue reading →

DLC – Countdown 11 – Vertical in the spotlight: Hardcore restrictions – Equivalence (EN)

“VERTICAL” IN THE SPOTLIGHT: HARDCORE RESTRICTIONS EQUIVALENCE GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? Online sales restrictions are under close scrutiny from the European Commission and national competition authorities. It is well established that outright online sales bans are qualified as hardcore restrictions, which cannot benefit from the VBER. However, also with respect to other online sales restrictions businesses must tread carefully. For example, in a selective distribution system, brand owners may set online sales criteria in order to protect their brand when distributors are selling online. The European Commission provides that such criteria … Continue reading →

DLC – Countdown 10 – Vertical in the spotlight: Hardcore restrictions – dual pricing (EN)

“VERTICAL” IN THE SPOTLIGHT: HARDCORE RESTRICTIONS – DUAL PRICING GETTING READY FOR 1 JUNE 2022 AND EUROPEAN COMPETITION RULES CHANGE   WHAT? When a supplier or manufacturer charges different wholesale prices for the same product depending on whether the product is intended to be sold online or offline, or whether the buyer will sell it to a retailer or directly to end-customers, dual pricing is practiced. A dual pricing practice does not always qualify as a restriction of competition, although it is a valid presumption that this is the case where sales via the internet are disadvantaged. The underlying rationale for such … Continue reading →