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Eu Vertical Agreements Block Exemption Guidelines

// Author: James // 0 Comments

The prohibition laid down in Article 101(1) of the Treaty shall apply during the period from 1 June 2010 to 31 May 2011 for agreements already in force on 31 May 2010 which do not fulfil the conditions for exemption laid down in this Regulation but which, on 31 May 2010, fulfilled the conditions for exemption laid down in Regulation (EC) No 2790/1999. The competition authority of a Member State may withdraw the benefit of this Regulation, in accordance with Article 29(2) of Regulation (EC) No 1/2003, for the territory of that Member State or part of it, if, in a given case, an agreement to which the exemption provided for in this Regulation applies nevertheless has effects incompatible with Article 101, paragraph 3 of the Treaty , or in a part thereof: and if that area has all the characteristics of a distinct geographic market. There are 5 restrictions that exclude the entire agreement from the benefits of the settlement, even if the market shares of the supplier and the buyer are less than 30%. They are considered to be serious restrictions of competition because they are likely to harm consumers. A vertical agreement is covered by this Regulation if neither the supplier nor the buyer of the goods or services has a market share exceeding 30%. For the supplier, its market share in the relevant delivery market, that is to say.dem the market on which it sells the goods or services, is decisive for the application of the block exemption. For the buyer, his market share on the relevant purchase market, that is to say, .dem market on which he purchases the goods or services, is decisive for the application of the Regulation. The category of agreements which can be assumed to normally fulfil the conditions laid down in Article 101(3) of the Treaty includes vertical agreements for the purchase or sale of goods or services where such agreements are concluded between non-competing undertakings, between certain competitors or by certain associations of product retailers. These include vertical agreements that contain additional provisions on the assignment or use of intellectual property rights. The term `vertical agreements` should include the corresponding concerted practices. the supplier`s market share covers all goods or services supplied to vertically integrated distributors for the purpose of sale; This Regulation should not exempt vertical agreements which contain restrictions which may restrict competition and harm consumers, or which are not essential for the achievement of efficiency enhancing effects. .

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