Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Block exemption definition

What does Block exemption mean? A block exemption is a competition law safe harbour that automatically exempts defined categories of agreements from the general ban on anti-competitive agreements, if specified conditions are met and no hardcore restrictions (for example, price fixing or certain territorial or customer allocation) are included. It is typically applied to vertical distribution and supply, franchising, research and development, specialisation and motor vehicle distribution and servicing. United Kingdom: Block exemptions are set by Block Exemption Orders under the Competition Act 1998. Where their criteria (including market share thresholds and excluded/hardcore restrictions) are satisfied, they disapply the Chapter I prohibition in section 2...

Most-Favoured-Nation (Parity) Clauses in Vertical Agreements: EU and UK Competition Law Analysis, Enforcement and Lessons (pre-VABEO/VBER 2022), with Emphasis on Online Platforms

Published by a LexisNexis Competition expert

Practice notes

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This Practice Note is archived and no longer updated.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 From 1 June 2022, VABEO superseded the Vertical Restraints Block Exemption Regulation 330/2010 (VBER 2010) in the UK.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 Regulation 2022/720. For an assessment of MFNs in the UK under...

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Web page updated on 21/05/2026

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