Vertical Agreements Block Exemption Regulation Guidelines

Vertical Agreements Block Exemption Regulation (VABER) Guidelines: What You Need to Know

When it comes to vertical agreements in the European Union (EU), businesses need to comply with the Vertical Agreements Block Exemption Regulation (VABER). The VABER provides an exemption from antitrust rules for certain types of agreements between businesses operating at different levels of the supply chain.

What are Vertical Agreements?

Vertical agreements refer to agreements between businesses at different levels of the supply chain, such as those between a manufacturer and a distributor or between a supplier and a retailer. These agreements can include provisions related to various aspects of the business relationship, such as pricing, distribution, and territories.

What is the VABER?

The VABER is a set of guidelines issued by the European Commission that provides an exemption from antitrust rules for certain types of vertical agreements. This exemption is intended to promote competition and efficiency in the market by allowing businesses to engage in agreements that may otherwise be considered anti-competitive.

What Types of Agreements are Covered by the VABER?

The VABER covers a range of agreements, including:

1. Distribution agreements between manufacturers and distributors, such as exclusive and selective distribution agreements.

2. Supply agreements between suppliers and retailers, such as exclusive purchasing obligations and non-compete clauses.

3. Franchise agreements between franchisors and franchisees, such as territorial and pricing restrictions.

What are the Requirements for Compliance with the VABER?

To be eligible for the exemption provided by the VABER, businesses must ensure that their agreements meet certain requirements. These requirements include:

1. The market share of the businesses involved must not exceed certain thresholds.

2. The agreement must not contain any hardcore restrictions, such as price-fixing or customer allocation.

3. The agreement must not contain any restrictions that would make it difficult for new competitors to enter the market.

What are the Benefits of Complying with the VABER?

Complying with the VABER can provide businesses with a number of benefits, including:

1. Legal certainty: Compliance with the VABER provides businesses with an exemption from antitrust rules, which can provide legal certainty and reduce the risk of fines and legal action.

2. Increased efficiency: The VABER allows businesses to engage in agreements that may otherwise be considered anti-competitive, which can increase efficiency and reduce costs.

3. Competitive advantage: By complying with the VABER, businesses can gain a competitive advantage over competitors who are not taking advantage of the exemption.

In conclusion, complying with the VABER can provide businesses with a range of benefits, including legal certainty, increased efficiency, and a competitive advantage. If you are engaged in vertical agreements within the EU, it is important to be aware of the guidelines set forth by the VABER and to ensure compliance with the requirements.