EU competition rules applicable to vertical restraints can now be changed

The Council has given the Commission its green light to continue the reform process of competition policy applicable to vertical restraints.

Two new Regulations will amend the famous Regulations 19/65/EEC of 2 March 1965 and Council Regulation 17 of 6 February 1962.

Vertical agreements are concluded between firms operating at different levels of the production or distribution chain and define the conditions under which the firms may acquire, sell or re-sell certain goods or services. This covers in fact all industrial distribution and supply agreements.

From now on, the Commission can draw up and adopt a broad exemption regulation covering all vertical restraints affecting finished or intermediate products and services, including vertical agreements concluded by certain associations of retailers. The block exemption will be subject to certain conditions and will apply only to firms whose market shares do not exceed a specific threshold. This threshold should be of 30% market