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Hardcore restrictions meaning

What does Hardcore restrictions mean?
In competition law practice, hardcore restrictions are the most serious forms of anti-competitive conduct or clauses that are treated as restrictions “by object”, typically unlawful without proof of effects and ineligible for block exemption. In horizontal agreements between competitors, this covers price-fixing, market/customer sharing, output or supply limitations and bid rigging. In vertical agreements (supplier–distributor), it commonly includes resale price maintenance and territorial or customer restrictions that ban or unduly limit active or passive sales (including measures preventing effective use of the internet), as well as restrictions on cross-supplies within selective distribution. The expression is widely used across UK and EU competition regimes. In the UK, the Chapter I prohibition (Competition Act 1998), the Vertical Agreements Block Exemption Order 2022 and CMA guidance identify hardcore restrictions in verticals and condemn hardcore cartel conduct between competitors. In Ireland, Article 101 TFEU, the EU Vertical Agreements Block Exemption Regulation (Reg 2022/720) and Commission/CCPC guidance take an equivalent approach. Usage and practical consequences are broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland. Practical significance: hardcore restrictions normally cannot be exempted, expose parties to substantial fines, damages actions and director disqualification, and—in the UK—may engage the criminal cartel offence for individuals involved in...
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View the related Checklists about Hardcore restrictions

CHECKLISTS
EU competition law checklist for vertical agreements: VBER 2022, Articles 101/102 TFEU, TTBE, market share thresholds, hardcore and excluded restrictions, and options if block exemptions are unavailable

This Checklist can be used to evaluate compliance of vertical agreements with EU competition law, notably under the Vertical Block Exemption Regulation 2022/720 (VBER 2022). For analysis of the VBER 2022, see further, Introduction to the application of Article 101 TFEU to vertical agreements and The Vertical Block Exemption Regulation 2022/720 Framework for assessment When applying EU law to vertical agreements, it is necessary to consider: The competition rules under Article 101 TFEU: Whether the agreement is captured by Article 101(1) TFEU at all (although, in practice, the VBER 2022—and other block exemptions—may often be considered before Article 101 TFEU). Whether the agreement restricts competition at all (this is frequently overlooked)—some categories of agreement may not be restrictive of competition. Also, agency will fall outside Article 101 TFEU where there is a genuine agency situation (exercise caution, as restrictions in an agency agreement may still fall foul of Article 101 TFEU)...

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CHECKLISTS
Vertical Agreements under the Competition Act 1998 (UK VABEO 2022): Drafting and Compliance Checklist—hardcore/excluded restrictions, dual distribution, parity and online sales

This Checklist summarises the key considerations when preparing new vertical agreements, or revising existing ones, to determine whether they benefit from the block exemption in The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, SI 2022/516 (UK VABEO). It is not a full exposition of UK VABEO, but a tool for commercial lawyers to check that a vertical arrangement falls within UK VABEO (together with any accompanying guidance). For more detail, refer to: CMA Guidance: UK VABEO. A flowchart appears at the end of this Checklist, outlining the principal steps for assessing whether an agreement is covered by UK VABEO. Introduction to UK VABEO Agreements that affect trade and limit competition in the UK may fall within the prohibition on anti-competitive agreements contained in Chapter I of the Competition Act 1998 (CA 1998)...

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CHECKLISTS
EU R&D Block Exemption Regulation 2023 (Reg 2023/1066): Drafting Checklist for R&D Agreements—scope, conditions, market share thresholds, hardcore/excluded restrictions, duration, withdrawal, and transition period

R&D agreements—drafting for the EU R&D BER 2023—checklist This Checklist outlines the key issues to address when preparing new Research and Development (R&D) agreements, or revising current R&D arrangements, to determine whether they fall within the EU R&D BER 2023 (Commission Regulation (EU) 2023/1066 on the application of Article 101(3) of the Treaty on the Functioning of the European Union (TFEU) to specific categories of research and development agreements). It is not a detailed manual on the EU R&D BER 2023; rather, it is a practical tool for commercial lawyers aiming to confirm that an R&D agreement sits within the EU R&D BER 2023 and the accompanying Horizontal Guidelines. Introduction to the EU R&D BER 2023 Any arrangement that impacts trade or restricts competition in the EU may fall under the ban on anti‑competitive agreements in Article 101(1) TFEU. That said, an agreement will not be prohibited if it: meets the conditions for exemption under Article 101(3) TFEU, or benefits from a relevant...

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View the related Practice Notes about Hardcore restrictions

PRACTICE NOTES
Case C‑230/16 Coty Germany: CJEU upholds selective distribution for luxury goods; marketplace bans lawful; not hardcore restrictions under VRBE; clarifies Article 101(1) TFEU and Pierre Fabre

Case hub archived This archived case hub records the position as at the decision of 6 December 2017 and is no longer updated. Further information: timeline, commentary and related/relevant cases. Case facts Outline A reference was made by the Oberlandesgericht Frankfurt am Main (Higher Regional Court of Frankfurt) to the Court of Justice for a preliminary ruling under Article 267 TFEU. The request sought clarification, under Article 101 TFEU, on the lawfulness of prohibitions on sales via online marketplaces within a selective distribution framework. Specifically, the German court asked whether a ‘qualitative’ selective distribution system can validly impose online sales limitations aimed at preserving a luxury brand’s image. The question emerged from proceedings in Germany between Coty Deutschland GmbH and Parfümerie Akzente GmbH, in which Coty Germany brought an action to prevent Akzente from selling Coty Germany products through the online platform ‘amazon.de’...

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PRACTICE NOTES
EU Specialisation Block Exemption Regulation 2023/1067: Article 101 TFEU safe harbour: scope, market-share threshold, duration, hardcore restrictions, transitional arrangements, and withdrawal

Introduction Block exemption regimes provide widely applicable safe harbours from the EU prohibition on anticompetitive agreements as set out in Article 101(1) TFEU, so long as the arrangement satisfies the requirements of the relevant block exemption. Each such instrument rests on the presumption that any restrictive deal within its compass fulfils the four criteria in Article 101(3) TFEU that are needed for an individual exemption from the application of Article 101(1) TFEU (see further, Article 101(1) TFEU—the prohibition on restrictive agreements and Individual exemptions under Article 101(3) TFEU). Accordingly, every block exemption establishes a safe harbour that shields restrictive arrangements from legal challenge under Article 101 TFEU. The former Specialisation Block Exemption Regulation (EU) 1218/2010 (SBER 2010), which expired on 30 June 2023, had been in force since 1 January 2011. Following a review process and consultation with stakeholders, the updated Specialisation Block Exemption Regulation (EU) 2023 (SBER 2023) entered into force on 1 July 2023. Specialisation agreements are most likely to contribute to improvements in manufacturing or the...

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PRACTICE NOTES
UK Research and Development Agreements Block Exemption Order 2022: Scope, Market-Share Thresholds, Conditions, Hardcore and Excluded Restrictions, Duration, Transitional Provisions and CMA Powers

Introduction Block exemption rules offer broadly applicable safe harbours for agreements from the UK ban on anti-competitive agreements set out in Chapter I of the Competition Act 1998 (notably section 2), so long as the agreement satisfies the conditions of the relevant block exemption. Each such regime rests on the assumption that any restrictive deal within its ambit meets the four criteria in section 9 of the Competition Act 1998 required to obtain an individual exemption from section 2 (see also, Practice Note: Chapter I prohibition). As a result, a block exemption creates a safe harbour shielding restrictive arrangements from challenge under section 2 of the Competition Act 1998. Before 1 January 2023, research and development (R&D) agreements were covered by Retained Regulation (EU) 1217/2010, the Retained Research and Development Block Exemption Regulation (UK Retained R&D BER), which continued to apply in the UK as retained EU law after Brexit. The UK Retained R&D BER lapsed on 31 December 2022 and, from 1 January 2023, was superseded by (UK...

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