National Competition Law Report – Q3 2006

POLICY AND PROCEDURE

Draft amendment to the Notice on Vertical Agreements

On September 5, the FCC issued a draft amendment on the Notice on Vertical Agreements of February 18, 2002.

The purpose of the Notice on Vertical Agreements is to identify vertical agreements that are presumed to eliminate or appreciably restrict competition and those that are considered as appreciably restricting competition and therefore unlawful in the absence of economic efficiency justifications. The FCC intends to adapt the Notice on Vertical Agreements of February 18, 2002 to come in line with the amendments to the Competition Act of June 20, 2003 and to the Swiss De Minimis Notice of December 21, 2005, ensuring harmonization with EC competition law (in particular, the EC Block Exemption Regulation).