Vertical Agreement Method

In addition, vertical agreements appear to be more effective in terms of activity. The most frequent vertical restraints are as follows: it is recalled that rules are established for vertical agreements, Law No 4054 and Vertical Agreement Block Exemption Notice No 2002/2 (“Communiqué”). Under the fourth article of Law No. 4054: “Agreements and concerted practices of undertakings and decisions and practices of associations of undertakings the object, effect or potential effects of which are, directly or indirectly, to prevent, distort or restrict competition in a given market for goods and services are illegal and prohibited”. If the conditions of Fifth Law No. 4054 are met, enterprises may be exempted from Article 4. That exemption may take the form of recognition of the block exemption by means of the notice or in the form of an individual exemption decision. Barriers to entry are increasing, competition is being reduced or mitigated, and other ways to facilitate horizontal agreements. [2] Detailed information on the vertical agreements and block exemptions provided for in the communiqué is given below. Read the Commission Communication on small agreements Since the entry into force of the Block Exemption Regulation (GMO) in June 2000, companies have to carry out a self-assessment of the possible consequences of their vertical agreements, i.e. agreements concluded in a distribution channel between companies at different commercial or industrial levels, that is, between a manufacturer and a wholesaler, between a supplier and a customer. or between a licensor and its licensee.

Such an assessment can be extremely complex. Although the European Commission has published regulatory guidelines to facilitate the self-assessment process, there is no doubt that the detailed analysis and guidance of this book is highly appreciated by businessmen and their advisors. If it is confirmed that the parties are operating at different levels of negotiation for the purposes of an agreement and that the agreement has a “trade impact”, the procedure for assessing the vertical agreement provided for in Article 101 of the Treaty on the Functioning of the European Union is broadly as follows: the parties may include contractual restrictions or obligations in vertical agreements in order to protect an investment or simply to operate on a daily basis (e.g. .