Selective Distribution System meaning

Private actions CAT grants interim injunction requiring Porsche to continue supply of spare parts to Eurospares The CAT has delivered its judgment in Eurospares (Continental Parts) Limited v (1) Porsche Cars Great Britain Limited (2) Porsche Retail Group Limited, following an application by Eurospares (Continental Parts) Ltd (Eurospares) for an interim injunction. Eurospares sought an order restraining Porsche Cars Great Britain Limited (PCGB) and Porsche Retail Group Limited (PRG) (together, Porsche) from stopping or refusing to supply Eurospares with Porsche spare parts pending determination of its claim. That claim alleges that the design of Porsche’s selective distribution system infringes the Chapter I and Chapter II prohibitions in the Competition Act 1998. In response, the CAT granted interim relief, directing Porsche to maintain the supply of Porsche spare parts to Eurospares until the dispute is resolved...

Case hub archived This archived case hub records the position as at the decision of 6 December 2017 and is no longer updated.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’...

This Practice Note considers non-compete clauses in commercial agreements and the effect of the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, SI 2022/516 (the UK VABEO) Non-compete clauses are contractual commitments that curb a party from competing with another’s business. They appear in numerous guises and are described using varied terminology; they may equally be labelled exclusivity clauses, exclusivity provisions, non-poaching clauses, non-solicitation clauses, restraint of trade clauses, or restrictive covenants. This Practice Note examines the impact of the UK VABEO and reviews the following familiar types of non-compete restriction found in standard vertical commercial arrangements where the parties are neither actual nor potential rivals: non-compete clauses in distribution agreements etc non-compete clauses in consultancy agreements exclusive supply obligations exclusive purchase obligations minimum spend commitments Arrangements that may restrict competition fall within the scope of competition law...

CASE HUB ARCHIVED –this archived case hub reflects the position at the date of the decision of 17 December 2018; it is no longer maintained. See further, timeline, commentary and related cases. Case facts Outline European Commission probe under Article 101 TFEU into vertical limits on online advertising and cross-border sales attributed to Guess (Case AT.40428). Latest developments On 17 December 2018, the Commission adopted an infringement decision against Asus, levying €39.821m (following an ‘informal settlement’) for restraining retailers’ online advertising and blocking cross-border sales to consumers in other Member States (‘geo-blocking’), in breach of Article 101 TFEU. Parties Guess is a United States-based clothing brand and retailer that designs, distributes and licences apparel and accessories under several trade marks, including “GUESS?” and “MARCIANO”. In the EEA, Guess operates a selective distribution system. Background The investigation was opened on 6 June 2017, informed by evidence obtained during the Commission’s e-commerce sector inquiry. Market(s) Distribution and retail markets for clothing...