Non Competition Clause In Distribution Agreement

Notification to competition authorities would only be required for mergers meeting certain turnover thresholds. With regard to relatively small concentrations, the Belgian Competition Authority will look into the case (Articles IV.7 to IV.10 of the Belgian Economic Code). In the case of large concentrations (which generally have effects beyond national borders), notification must be made to the European Commission (REGULATION) 139/2004 of the Council of 20 January 2004 relating to the control of concentration between companies). 3. Franchising – Franchise agreements often include the licensing of intellectual property rights, including trademarks and know-how, for the use and distribution of goods or services. In addition to the license, the franchisee generally provides ongoing commercial or technical assistance to the franchisee. Vertical franchise restrictions often involve a combination of other agreements, such as selective distribution or exclusive distribution.B. The EU evaluation process takes into account the efficiency gains of the franchising model when assessing the anti-competitive effects of the vertical restrictions of the franchising agreement. [27] The supplier must limit the ability of a distributor in a selective distribution network to make active or passive sales to resellers that are not part of that network. A supplier may provide its distribution partners, where the market share in question between the supplier and the buyer or distributor does not exceed 30%, Regulation (EC) 2790/1999, often referred to as “category exemption regulation” (or “BER”), constitutes a “safe port” for many vertical agreements. Hardcore restrictions remain prohibited, as are other provisions described below.

There are other anti-competitive conditions that are themselves invalid, but that will not invalidate the whole agreement. If the agreement remains commercial without these conditions, they can be withdrawn, so that the rest of the agreement remains in force. Ber only allows vertical agreements between competitors if “the agreement is not reciprocal and the buyer achieves a maximum turnover of 100 million euros or the buyer is not a competitor, but only a competitor of the supplier at the distribution level (i.e. a manufacturer that sells its products directly and through distributors).” [11] Ber does not apply to competitors who participate in exclusive distribution and import agreements. For example, “two brewers operating in different countries cannot become the only distributors and distributors of the other beer in its domestic market.” [12] c. The exclusion of certain brands from a selective distribution system, z.B. where a supplier prevents its ordered distributors from selling a competitor`s product, is not permissible. The majority of European nations have adopted rules on distribution agreements that are much more restrictive and complex than those of most American states.

Many nations, such as Belgium, have passed laws that invalidate contrary provisions in distribution agreements, including provisions that contain the laws of other jurisdictions. The manufacturer or wise exporter to Europe will take the time to know the restrictions on agreements in the specific country subject to the agreement and not to consider that a provision of the agreement that uses foreign legislation (European Union) will solve the problem. 5. Exclusive Delivery – These agreements require or induce the supplier to sell a specific property or service only to a buyer for use or resale.

This entry was posted in Uncategorized by admin. Bookmark the permalink.

Warning: count(): Parameter must be an array or an object that implements Countable in /homepages/7/d328811302/htdocs/teamalter/wp-includes/class-wp-comment-query.php on line 405

Comments are closed.