UK Vertical Agreement Block Exemption Order (VABEO): A Cautious Refresher

The long-awaited consultation document setting out the CMA's proposals on the future treatment of vertical (supply chain) agreements in the UK is finally out. As expected, the CMA will recommend that the rules inherited from the EU following Brexit will be replaced, on their expiry in 2022, with a UK-specific regime, the Vertical Agreements Block Exemption Order (the "VABEO").

This article summarises the CMA's current proposals on the content of the VABEO and their significance for distribution agreements in the UK. The VABEO will mostly replicate the bulk of the retained VBER. However, the proposals to removal the dual pricing and equivalence rules from the current list of hardcore restrictions are quite significant and will be welcomed by manufacturers and brand owners. It is still too early to tell whether the EU Commission will follow the same approach as the CMA when it publishes its own draft block exemption regulation in the next few months, or if this is