New Vertical Agreements Block Exemption And Guidelines

The new European Commission Vertical Agreements Block Exemption Regulation and accompanying guidelines, are now in force (although there will be a transitional period until 31 May 2011 for pre-existing agreements that complied with the old block exemption). The block exemption provides a safe harbour for vertical agreements (for example agreements between manufacturers and wholesalers) that fulfil certain conditions. The guidelines provide guidance on the assessment of vertical restrictions. In terms of the most significant changes these are in relation to the market share threshold in the block exemption, and further guidance on restrictions on internet selling.

The 30% market share threshold