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ARTICLE · 22 OCTOBER 2014

Put The Pedal To The Metal

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Whilst the competition rules against anti-competitive agreements can apply to franchise networks, the impact in practice has traditionally been low.

United KingdomAntitrust/Competition Law
John Cassels
John Cassels

Whilst the competition rules against anti-competitive agreements can apply to franchise networks, the impact in practice has traditionally been low.  This is partly because competition authorities have taken a favourable approach to franchising and partly because of the potential 'life savers' available under EU law (e.g. the De Minimis Notice, the Vertical Agreements Block Exemption Regulation).

However, the decision taken by the UK's Competition and Markets Authority last year, in which it fined Mercedes-Benz (the franchisor) and its dealers (each a franchisee with a small share of the market for the supply of commercial vehicles) over £2.8 million for breaching UK competition law, may be the start of a shift in gear.

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