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ARTICLE · 25 MAY 2021

Will The UK Keep The VABER?

When, where and why should the law intervene in the distribution of a product? This perennial and highly practical question is open for consultation as of 10 February 2021.

United KingdomAntitrust/Competition Law

When, where and why should the law intervene in the distribution of a product? This perennial and highly practical question is open for consultation as of 10 February 2021 (see more here).

During its EU membership, the UK was required to apply the EU's Vertical Agreements Block Exemption, which applied a relatively strict approach to distribution restraints by global standards. Aspirations towards a single market put a premium on not only banning, but punishing, certain restrictions in distribution systems that prevented cross-border trade, regardless of the economic efficiency of intervention.

The UK has for now retained the Block Exemption itself under the terms of the Withdrawal Act. However, the meat and potatoes of the interpretation was always in the EU's Guidance. Much of this guidance speaks to the integration of the EU single market, which the UK has left. There is scope to argue that some of the interventions were based on single market concerns which are

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