Rules that govern agreements between manufacturers and distributors have been simplified because of the growth of online sales and the entry of new players such as online marketplaces, EU antitrust regulators said on Tuesday.
The rules, called the Verticals Block Exemption Regulation and the Vertical Guidelines, will go into force on June 1 to replace the current set of rules that expire this month.
The new rules mean it will be easier for buyers to actively approach customers and for suppliers to set different wholesale prices for online and offline sales by the same distributor in order to incentivise or reward investments.
Agreements with sustainability objectives, such as exclusivity obligations to incentivise investments in green energy plants, also get more leeway.
The rules also said criteria imposed by suppliers for online sales should not prevent the effective use of the internet by the buyer or its customers to sell goods or services, an issue which in the past has pitted brand names against online platforms.
Illegal practices under the new rules include preventing a distributor from using an online advertising channel such as search engine advertising or price comparison services to attract customers to its website.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI