Jurisdiction(s):
United Kingdom

Key definition

Vertical restraints definition

What does Vertical restraints mean? In competition law practice, vertical restraints are contractual restrictions in supply or distribution arrangements between businesses at different levels of the supply chain (for example, a manufacturer and a retailer). The term is descriptive rather than a statutory definition, but it is regulated under rules on vertical agreements. Typical restraints include resale price maintenance (RPM), territorial or customer allocation (including limits on passive sales), exclusive or selective distribution, non-compete/exclusivity clauses, most-favoured-nation (MFN)/price parity obligations, and restrictions on online sales or use of platforms. Legality is assessed under the Chapter I prohibition of the Competition Act 1998 (England & Wales, Scotland and...

Asus: European Commission Article 101 TFEU decision on online resale price maintenance; €63.522m fine after informal settlement; pricing algorithms and e-commerce sector inquiry findings (AT.40465) [Archived]

Published by a LexisNexis Competition expert

Practice notes

CASE HUB ARCHIVED

This archived case hub sets out the position as at the decision date of 24 July 2018 and is no longer updated. See also the timeline, commentary and related cases.

Case facts

Outline

European commission article 101 TFEU probe into vertical limits on online sales of consumer electronic products imposed by Asus (Case AT.40465).

Latest developments

On 24 July 2018, the Commission adopted an infringement decision against Asus, imposing a €63.522m fine (after an ‘informal settlement’) for applying fixed or minimum resale prices to its online retailers in breach of Article 101 TFEU.

Parties

Asus is a Taiwan-based company that manufactures computer and telephone hardware and electronic products.

Background

The Commission launched its investigation in February 2017 on the basis of material obtained during its e-commerce sector inquiry.

Market(s)

Markets covering the manufacture, distribution and retail of consumer electronic products, in particular computer and telephone hardware...

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Web page updated on 21/05/2026

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