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ARTICLE · 15 JANUARY 2014

Outside The EU

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The EU competition rules can apply to agreements which have an actual or potential effect on trade between EU Member States.

European UnionAntitrust/Competition Law

The EU competition rules can apply to agreements which have an actual or potential effect on trade between EU Member States.  This means that it must be possible to foresee with a sufficient degree of probability that the agreement may have an influence, direct or indirect, actual or potential, on the pattern of trade between Member States.

Agreements relating to supply of products outside the EU, but which include provisions preventing re-selling into the EU, can fall foul of the EU rules.  For example, Yves Saint Laurent appointed an EU-based distributor for Russia and Ukraine pursuant to an agreement which stated that its products must only be sold in Russia and Ukraine and under no circumstances should they leave the territories of those countries, i.e. there should be no re-selling into the EU.  The distributor challenged the agreement as contrary to EU competition law prohibiting agreements which restrict or distort competition. 

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