Vertical restraints meaning

Horizontal and vertical agreements that include clauses which would otherwise breach Article 101(1) TFEU can, in certain cases, escape the ban on anti-competitive arrangements by relying on one or more relevant block exemption regulations adopted by the Commission under Article 101(3) TFEU, which exclude specified categories of agreements from the application of Article 101(1) TFEU. This Checklist sets out a snapshot of the EU block exemption regulations currently in effect and outlines the key criteria that must be met for each regulation to take effect. Block exemptions applying to horizontal agreements The following block exemption regulations concern horizontal arrangements, that is, agreements between undertakings operating at the same tier of the supply chain (principally agreements between rivals). For exemptions relevant to vertical arrangements, refer to Block exemptions applying to vertical agreements below...

This Checklist sets out the key considerations when evaluating non‑compete provisions in vertical arrangements (such as supply contracts) under the UK’s vertical block exemption: The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, SI 2022/516 (VABEO). For a general overview of the VABEO, see Introduction to the application of Chapter I to vertical agreements and, for full guidance (including on non‑compete clauses), see The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022. For a checklist covering non‑compete provisions under the EU’s corresponding regime, the Vertical Block Exemption Regulation 2022/720, see Assessing non–compete clauses in vertical agreements under the EU’s Vertical Block Exemption Regulation 2022/720—checklist Is there a 'vertical agreement' and would the VABEO apply? For the purposes of this Checklist, we proceed on the basis that a vertical agreement is in place...

This Checklist This Checklist examines the intellectual property elements of vertical agreements and outlines the principal competition law issues. It addresses: the parties and configuration of vertical arrangements identification of the IP licence scope limits on use of the IP IP ownership third-party IP protection of the licensor’s IP warranties and indemnities On 10 May 2022, the European Commission adopted the EU Vertical Restraints Block Exemption, Regulation (EU) 2022/720 (EU VBER), along with the Vertical Guidelines. The EU VBER came into force on 1 June 2022 and will expire on 31 May 2034. See Practice Note: The Vertical Block Exemption Regulation 2022/720. On 9 May 2022, the UK government laid before Parliament the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (UK VABEO), SI 2022/516. The UK VABEO replaced the UK Retained VBER on 1 June 2022 and will expire on 1 June 2028. See Practice Note: The Competition Act 1998 (Vertical Agreements Block...

Antitrust Commission launches consultation on the effectiveness of antitrust rules governing vertical agreements in the motor vehicle sector The Commission has opened a consultation into how Commission Regulation 461/2010 — the Motor Vehicle Block Exemption Regulation (MVBER) — is working in practice, alongside the related Supplementary Guidelines on vertical restraints in agreements for the sale and repair of motor vehicles and for the distribution of spare parts (Supplementary Guidelines). In April 2023, the Commission decided to prolong the MVBER for a further five years, up to 31 May 2028. It also revised the Supplementary Guidelines to recognise the growing significance of access to vehicle-generated data needed for repair and maintenance services as a driver of competition...

Antitrust Commission launches call for evidence on the scope of content of the Motor Vehicle Block Exemption The Commission has opened a call for evidence to gather feedback on the scope and substance of its review of the Motor Vehicle Block Exemption Regulation (MVBER), as well as on the linked Supplementary Guidelines dealing with vertical restraints in agreements for the sale and repair of motor vehicles and for the distribution of spare parts (the Supplementary Guidelines), and invites interested stakeholders to share their views. In April 2023, the Commission resolved to extend the MVBER for a further five years, up to 31 May 2028. At the same time, it revised the Supplementary Guidelines to acknowledge the growing significance of access to vehicle‑generated data, which is necessary for maintenance and repair services, as an element of effective competition...

Article 101(1) TFEU outlaws agreements liable to affect trade between Member States whose object or effect is to prevent, restrict, or distort competition within the common market. Nonetheless, EU case law makes clear that limiting a party’s economic freedom does not automatically amount to a ‘restriction of competition’ under Article 101(1). The Court of Justice has suggested, for example, that it can be doubtful there is any interference with competition where a clause truly appears necessary for an undertaking’s move into a new area. That observation gave rise to the ‘ancillary restraints doctrine’, with the EU Courts and the European Commission (Commission) acknowledging that certain limitations are not ‘restrictions of competition’ within Article 101(1) when, having regard to the ‘legal and economic context’, they are shown to be necessary to protect the parties’ legitimate interests under the agreement. Doctrine Inspired by the common law analysis of commercial restraints (ie, exceptions to the rule against ‘restraints of trade’), an ‘ancillary restraint’ is any limitation directly related to, and necessary...

ARCHIVED: This Practice Note is archived and no longer maintained. On 10 May 2022, the Commission introduced the Vertical Block Exemption Regulation 2022/720 (VBER 2022). From 1 June 2022, VBER 2022 superseded the earlier Vertical Restraints Block Exemption Regulation 330/2010 (VBER 2010, also termed the VRBE in this Practice Note). This Practice Note was prepared with reference to VBER 2010. Note: VBER 2010 lapsed on 31 May 2022 and was replaced by VBER 2022 with effect from 1 June 2022. Under Article 10 of VBER 2022, a 12-month transitional period (ending 31 May 2023) applied to pre-existing vertical agreements in force on 31 May 2022 that satisfied the exemption conditions under VBER 2010 on that date but did not meet the exemption requirements of VBER 2022. Consequently, this Practice Note is supplied for background information only...

ARCHIVED: This Practice Note is archived and no longer updated. The UK has enacted The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (VABEO). From 1 June 2022, VABEO superseded the Vertical Restraints Block Exemption Regulation 330/2010 (VBER 2010) in the UK. The European Commission has also brought in the Vertical Block Exemption Regulation 2022/720 (VBER 2022), which replaced VBER 2010 in the EU on the same date. Together with their 2022 guidance/guidelines, the UK’s VABEO and the EU’s VBER 2022 materially alter how most-favoured nation (MFN) clauses are approached. This Practice Note predates both instruments and reviews how MFNs were treated by the European Commission and national competition authorities before VABEO and VBER 2022. For analysis of MFNs in the EU under Article 101 TFEU, VBER 2022 and the Commission’s 2022 Guidelines on Vertical Restraints, refer to the relevant sections within: Introduction to the application of Article 101 TFEU to vertical agreements, The Vertical Block Exemption Regulation 2022/720 and Analysing vertical agreements outside the Vertical Block Exemption...