"LexisPSL and the other Lexis solutions support our business in exactly the way we want. They enable us to quickly turn around work and deliver the best possible service to our clients."
SBP Law
Access all documents on Selective Distribution System
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.
For our full legal glossary and more legal research sources, register for a free Lexis+ trial
Vertical agreements—drafting for MVBEO—checklist This Checklist sets out the essential points that should be considered under The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 (No 2) (MVBEO) when drafting new vertical agreements, or updating existing vertical agreements, in relation to motor vehicle aftermarkets for the provision of repair and maintenance services or the distribution of motor vehicle aftermarket goods (together, the motor vehicle aftermarket). This Checklist is not intended to be a comprehensive guide to the MVBEO but should be used where a commercial lawyer wants to ensure that the vertical agreement falls within the MVBEO (and any guidance issued under it). For further information, see: CMA Guidance: MVBEO. A flowchart is also provided at the end of this Checklist, setting out the main steps to follow when assessing whether an agreement falls under the MVBEO. Introduction to MVBEO Any agreement which affects trade and restricts competition in the UK may be subject to the prohibition on anti-competitive agreements under the provisions of Chapter I of the Competition...
Block exemptions: an overview—checklist Horizontal and vertical agreements that contain provisions that would otherwise not be compatible with Article 101(1) TFEU may be exempted from the prohibition on anti-competitive agreements through one (or more) of the block exemption regulations issued by the Commission under Article 101(3) TFEU to exempt ‘categories of agreements’ from the application of Article 101(1) TFEU. This Checklist provides an overview of the EU block exemption regulations that are currently in force and describes the main conditions for each block exemption regulation to apply. Block exemptions applying to horizontal agreements The following block exemption regulations apply to horizontal agreements, ie agreements between undertakings operating at the same level of the supply chain (ie mainly agreements between competitors). For block exemptions applying to vertical agreements, please see Block exemptions applying to vertical agreements below. The research and development (R&D) block exemption regulation If the following main conditions are met, agreements relating to R&D efforts can benefit from the R&D block exemption regulation: • there is an agreement between...
Discover our 7 Checklists on Selective Distribution System
The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 Vertical agreements are prohibited by section 2(1) of the Competition Act 1998 (CA 98) where they: • may affect trade within the UK, and • have as their object or effect the prevention, restriction or distortion of competition within the UK. (the Chapter I Prohibition). It is also a requirement, under section 2(3) CA 98, that the agreement is implemented, or is intended to be implemented, in the UK. Agreements that restrain competition may be exempted from the Chapter I Prohibition by: • an individual exemption, where they satisfy the four requirements of section 9(1) CA 98 (see further, Chapter I prohibition and Introduction to the application of Chapter I to vertical agreements), or • a block exemption order made under section 6 CA 98 by the Secretary of State, in relation to particular categories of agreements (based on an assessment that the block exempted restrictive agreements fulfil the four requirements of section 9(1) CA 98). Each block...
Introduction to the application of Chapter I to vertical agreements This Practice Note refers to Chapter I of the Competition Act 1998 (CA 98), The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (VABEO) and the Competition and Markets Authority’s (CMA) guidance on the VABEO (VABEO Guidance). What is a vertical agreement? A vertical agreement is an agreement entered into by separate undertakings operating at different levels in the supply chain, for example a manufacturer and its distributors. A supplier may wish to have one or multiple resellers for its goods or services, through one or more levels of the supply chain, such as a UK-wide or country/region-specific importer and further resellers operating at the wholesale and retail levels. These activities will all constitute vertical agreements. Vertical agreements are generally agreements between non-competitors. This is opposed to horizontal agreements, which are agreements between competitors. Vertical agreements can take many different forms. The key types include: (i) agency; (ii) exclusive distribution; (iii) selective distribution; (iv) ‘free’ or non-exclusive distribution; (v)...
Discover our 25 Practice Notes on Selective Distribution System
Selective distribution agreement—non-exclusive (EEA territory) This Agreement is made on [insert date] Parties 1 [insert name of party] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Manufacturer) and 2 [insert name of party] [of OR a company incorporated in [country] under number [insert registered number] whose registered office is at] [insert address] (Distributor) (each of the Manufacturer and the Distributor being a party and together they are the parties). Background (A) The Manufacturer [manufactures and] supplies the [ [luxury OR premium OR top of market ] ] Products which are [associated with [high OR the highest] standards of quality in their field]. (B) The image of, and standard of service associated with, the Products are of [the highest] importance to customers and to maintain them the Manufacturer only appoints distributors in the Territory which meet the Requirements. (C) The Distributor is able and willing to meet the Requirements...
Del Credere sales agency agreement for goods—non-exclusive—pro-principal This Agreement is made on [date] Parties 1 [insert name of party] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Principal); and 2 [insert name of party] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at] [insert address] (Agent), (each of the Principal and the Agent being a party and together the Principal and the Agent are the parties). Background (A) The Principal [manufactures OR manufactures and supplies] the Products (as defined below). (B) The Principal wishes to appoint the Agent as its non-exclusive agent in the Territory (as defined below) for the [marketing OR marketing and sale] of the Products on the Principal’s behalf in accordance with the provisions of this Agreement. (C) The Agent has agreed to [market OR market and sell] the Products in the Territory on the Principal’s...
Dive into our 10 Precedents related to Selective Distribution System
Which Precedent agreement options should a company consider when supplying a product to end-customers via a representative third party? In answering this Q&A, we have focussed on the commercial models of agency, distribution and franchising as suggested ‘go to market’ options, and also licensing arrangements. Other models or agreements, or a combination of models and agreements, may be suitable for the circumstances in question. Agency Agency is an arrangement under which a principal appoints an agent to act at its direction for specified purposes. In business, agents are commonly appointed for the purposes of introducing and concluding agreements with new customers, marketing or customer support. The agent is given authority by its principal for specified purposes. The agent contracts on the principal's behalf rather than on its own. For an introduction to agency relationships, see: Agency—overview. For more detailed information on the different types of agency that may be suitable for your situation, see Practice Note: Nature and types of agency. We have a number of agency...
Can a non-exclusive distributor appointed to a territory be prevented from selling outside that territory under UK and EU competition law? Agreements between entities operating at different levels in the supply chain are often called ‘vertical agreements’. Distribution agreements are a type of vertical agreement. For more information, see: Distribution—overview and Lexology Panoramic: Distribution And Agency. There are several different types of distribution arrangement that can be utilised in a supply chain, including exclusive, non-exclusive (or ‘free’) and selective distribution. In the UK and EU, distribution agreements may benefit from an exemption from competition law restraints, provided they do not contain any prohibited or hardcore restrictions. Distribution and UK Competition Law Chapter I of the Competition Act 1998 and the vertical restraints block exemption order Chapter I of the Competition Act 1998 (CA 1998) prohibits agreements which prevent, restrict or distort competition within the UK. For further information, see Practice Notes: Chapter I prohibition and Introduction to the application of Chapter I to vertical agreements. Anti-competitive...
See the 4 Q&As about Selective Distribution System
Competition analysis: In this judgment, the Competition Appeal Tribunal (CAT) examined the compatibility with UK competition law of action taken by a brand operating a selective distribution system (Deckers) against one of its authorised retailers (UP & Running) to prevent it selling the brand’s products online at a discount. The judgment provides important guidance on the extent to which a brand may exercise its discretion when deciding when to eject a retailer from its selective distribution system; the steps that a brand can legitimately take to control a retailer’s online sales; and the extent to which a brand can manage sales of out of season products to avoid its retail margins being undermined. The case is also an interesting example of the CAT’s fast-track procedure in action, with the case proceeding from issuance of claim to final judgment in only a year. The CAT’s conclusion that the brand’s actions had infringed competition law, by unlawfully restricting the retailer’s ability to set its own prices and to use the internet, followed...
This week's edition of Competition weekly highlights includes, from a UK perspective: (1) the CAT’s judgment holding that Deckers breached the Chapter I prohibition concerning restrictions on the sale of HOKA running shoe brand, (2) the CMA’s consultation on a proposed remedies package in the Vodafone/Three phase 2 merger investigation, (3) the CMA’s decision that the Boparan/ForFarmers transaction merger meets the test for reference to phase 2, (4) the Court of Appeal’s judgment dismissing Meta’s application for permission to appeal a CAT judgment granting a revised application for CPO order brought by Dr Liza Lovdahl Gormsen, (5) the CAT’s ruling refusing DAF permission to appeal regarding CPO granted in Road Haulage Association collective damages action, (6) the CMA’s consultation on draft new guidance for the market regime, and (7) the Subsidy Advice Unit’s updated guidance for public authorities on how to make a referral. This week’s highlights also includes, from an EU perspective: (1) the General Court’s judgment largely dismissing an action against the Commission’s infringement decision regarding a cartel...
Read the latest 16 News articles on Selective Distribution System
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
0330 161 1234