Selective distribution is an exciting and constantly evolving system in the world of distribution and marketing. Before entering into a selective distribution agreement, you need to do some in-depth research and carefully consider your options. If you have any questions about selective distribution agreements, please contact Neil Williamson. It is clear that the latter of these restrictions is of particular importance for selective distribution. According to VABER, it is possible to prohibit authorized distributors from reselling competing brands, but any obligation to boycott products from a particular supplier will not benefit from the exemption. This provision is intended to prevent a number of suppliers using the same selective distributors from being able to prevent certain competitors from using these distributors, which may remove the market from those suppliers. „the limitation of active or passive sales to end-users by members of a selective distribution system operating at the retail level, without prejudice to the possibility of prohibiting a member of the system from operating from an unauthorized establishment.” Restructuring of selective distribution networks has been at the centre of legal news for several years, particularly in the automotive sector, where the non-renewal of a contract is generally difficult for the dealer or workshop to see. The latter rarely hesitates to take legal action (…) Online sales have been the subject of much discussion in the context of distribution agreements, as they threaten the notion of exclusive territories and allow the possibility of „freeriding”. In addition, with regard to luxury products among suppliers in particular, there is a concern that the brand`s reputation will be lost if it is not accompanied by personalized customer service and support in an appropriate environment that confers the aura of luxury, prestige and exclusivity. Another non-competitive engagement practice that is not permitted is the prevention of the sale of products from a competitor determined by members of a selective distribution system.
The supplier of a selective distribution system may require selected buyers to sell exclusively their own products and not sell competing products. However, it cannot allow the sale of the products of some competitors, while others are prevented from using this system. In other words, in a selective distribution system, non-competitive obligations must cover all or none of the competing products. There is no definitive list of products that require selective distribution. However, previous decisions by the Commission and European courts have stressed that the selective distribution of luxury goods such as perfumes and cosmetics, technically complex products such as photographic equipment and products combining both as high quality watches, should be justified. Eight years after its 18 September 2012 Opinion 12-A-20 on the competitive functioning of e-commerce, the Competition Authority is publishing an exciting study on the impact of e-commerce on competition policy. It shows that the application of competition rules is in line with (…) If you are able to meet all four criteria, your agreement may benefit from an individual exemption and does not violate EU competition law. If your agreement does not meet all four criteria, all will not be lost.
Your agreement can still be made by so-called „vertical category exemption agreements.” Internet tests selective distribution networks (see not.
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