Competition law and distribution agreements

  • What are the benefits of distributor agreement?

    The top 5 reasons why you need a distribution agreement in the market are:

    Obtaining control over the distribution of your products. Expansion in new markets. Protection of intellectual property (IP) and confidential information. Increase sales while reducing costs. Passing a large degree of risk..

  • What is a distribution agreement?

    A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products.
    The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas..

  • What is distribution agreement?

    A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products.
    The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas..

  • A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products.
    The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
  • A system in which a supplier agrees to supply only approved distributors who meet specified minimum criteria, and the distributors themselves agree only to supply end users or other distributors or dealers within the approved network.
May 30, 2022o In Coty, the EU Courts held that luxury goods suppliers may prohibit members of their selective distribution network from selling the contract 
May 30, 2022The package introduces important changes for the treatment of distribution agreements under EU competition law, in particular to the rules 
A distribution agreement is more likely to be affected by competition law rules (eg the Competition Act) than other agreements because the supplier often imposes certain terms that affect the distributor's sale contracts with their own customers.

Are dual distribution systems exempt from competition law?

Dual distribution systems are currently exempted from competition law where they fall within the safe harbour in the Vertical Block Exemption Regulation.
The Revised Regulation reduces the safe harbour market share threshold for dual distribution systems to situations where the parties’ aggregated market share in the retail market either .

What changes are included in the EU competition law package?

The package introduces important changes for the treatment of distribution agreements under EU competition law, in particular to the rules governing the combination of several different distribution systems, dual distribution, dual pricing and parity obligations.
What are the VBER and Vertical Guidelines? .

What if a distribution agreement has a 'hardcore' restriction?

If a distribution agreement includes ,a 'hardcore' restriction, it will not benefit from the safeguards contained under the UK competition rules, including:

  • the vertical agreements block exemption. price fixing - a supplier must not impose a fixed or minimum price at which distributors can resell the goods.

    • Why is a distribution agreement more likely to be affected by competition law?

    A distribution agreement is more likely to be affected by competition law rules (eg the Competition Act) than other agreements because the supplier often imposes certain terms that affect the distributor's sale contracts with their own customers.
    Answer a few questions.
    We'll take care of the rest .

    Are dual distribution systems exempt from competition law?

    Dual distribution systems are currently exempted from competition law where they fall within the safe harbour in the Vertical Block Exemption Regulation

    The Revised Regulation reduces the safe harbour market share threshold for dual distribution systems to situations where the parties’ aggregated market share in the retail market either

    What are the competition law considerations in a distribution agreement?

    Distribution Agreements: What are the Competition Law Considerations? A key consideration for a business entering into a distribution agreement is to ensure the agreement complies with competition law to avoid the risk of incurring potential substantial penalties and reputational damage

    What changes are included in the EU competition law package?

    The package introduces important changes for the treatment of distribution agreements under EU competition law, in particular to the rules governing the combination of several different distribution systems, dual distribution, dual pricing and parity obligations

    What are the VBER and Vertical Guidelines?

    A distribution deal is a legal agreement between one party and another, to handle distribution of a product.

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