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...

Nike vertical restraints restricting cross-border sales of licensed merchandise: European Commission Article 101 TFEU decision, €12.6m fine via informal settlement (Case AT.40436, 2019)

Published by a LexisNexis Competition expert

Practice notes

CASE HUB ARCHIVED

This archived case hub sets out the position as at 25 March 2019, the date of the decision, and it is no longer maintained. For more, see: timeline and commentary.

Case facts

Outline

European commission article 101 TFEU investigation into vertical constraints on cross-border sales of licensed merchandise imposed by Nike (Case AT.40436).

Latest developments

On 25 March 2019, the Commission adopted an infringement decision against Nike, imposing a €12,555,000 fine (following an ‘informal settlement’) for applying vertical restrictions on the cross-border sale of licensed merchandise in breach of Article 101 TFEU.

Parties

Nike is a US-based company that designs and sells athletic footwear and clothing, including for football clubs and federations.

Background

The Commission opened its investigation in June 2017. Two parallel investigations into the licensing and distribution practices of Sanrio and Universal Studios were launched at the same time.

Market(s)

Markets for the manufacture, distribution and retail of athletic footwear and clothing, in particular licensed products featuring the brands of football clubs or federations...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...