Meaning
Competition regulations provide a safe harbor from antitrust rules for certain vertical agreements that meet specific market share and conduct requirements. This legal framework, known as vber 2022 720, applies to distribution contracts where neither the supplier nor the buyer holds a market share exceeding thirty percent. It establishes the rules for territorial exclusivity, selective distribution, and dual pricing within the European Union.
The regulation does not protect agreements that contain hardcore restrictions on pricing or passive sales.
Exemption Safe Harbor
Market share thresholds determine whether a distribution agreement qualifies for automatic protection. Under vber 2022 720, if both the manufacturer and the distributor remain below the thirty percent market share limit, their agreement is presumed to be legal. This presumption reduces the compliance costs for small and medium-sized enterprises.
It provides clear legal certainty for standard distribution agreements.
Prohibited Restraints
Hardcore restrictions will automatically invalidate the entire block exemption, exposing the parties to heavy antitrust fines. These prohibited clauses include resale price maintenance and absolute territorial protection. This exclusion prevents companies from creating artificial barriers to trade.
ECommerce Impact
Digital distribution receives clearer rules regarding the use of dual pricing and non-equivalent sales criteria. This regulation permits suppliers to charge different prices for online and offline sales to reflect the higher costs of brick-and-mortar operations.
