Eu Commission Vertical Agreements Guidelines
The European Union Commission has recently released new guidelines on vertical agreements, which are contracts between businesses operating at different levels of the supply chain. These agreements can involve various industries, from retail to technology, and can have a significant impact on competition and consumer choice.
The EU Commission`s guidelines aim to clarify the rules surrounding vertical agreements and provide businesses with a better understanding of what is allowed under EU competition law. This is particularly important in light of the increasing use of online platforms and the growing importance of e-commerce.
One of the key provisions in the new guidelines is the requirement for businesses to ensure that their agreements do not have any anti-competitive effects. This includes restrictions on pricing, sales territories, and the use of selective distribution. Businesses must also avoid any practices that could limit consumer choice or harm competition.
The guidelines also provide specific guidance on issues such as resale price maintenance, online sales, and dual distribution. For example, businesses are advised to avoid fixed or minimum resale prices, as these can restrict price competition between suppliers. Likewise, the guidelines clarify that businesses cannot prevent their retailers from selling online or require them to fulfill minimum quotas for online sales.
Overall, the EU Commission`s new guidelines on vertical agreements provide businesses with greater clarity on what is allowed under competition law. By following these guidelines, businesses can ensure that their agreements do not harm competition, and can continue to provide consumers with a wide range of choices.
