As a copy editor, it is important to understand the concept of vertical agreements and block exemptions within the realm of competition law. Essentially, vertical agreements are agreements between businesses at different levels of the supply chain (e.g. between a manufacturer and a retailer), while block exemptions are exemptions granted by the European Union that exempt certain types of agreements from the prohibition on anti-competitive behavior.
However, not all vertical agreements are eligible for block exemptions. In fact, there are certain criteria that a vertical agreement must meet in order to qualify. One of these criteria is that the agreement must not contain any “hardcore restrictions,” which are considered particularly anti-competitive. Examples of hardcore restrictions include fixed prices or minimum resale prices, restrictions on cross-border sales, and exclusive distribution agreements.
But what happens if a vertical agreement contains a hardcore restriction? Does this automatically disqualify it from block exemptions? The answer is not necessarily. The European Union has established a “safe harbor” provision that allows certain vertical agreements with hardcore restrictions to still qualify for block exemptions, as long as certain conditions are met.
One of these conditions is that the market share of both the supplier and the buyer must not exceed certain thresholds. If either the supplier or the buyer has a market share of over 30%, the agreement will not qualify for block exemptions. Similarly, if the market share of both the supplier and the buyer combined is over 40%, the agreement will also not qualify.
Other conditions that must be met include the duration of the agreement (which must not exceed five years), the fact that the agreement must not contain any “exclusivity obligations,” and the fact that the agreement must not contain any provisions that restrict the ability of the parties to sell to customers or end-users outside of the territory covered by the agreement.
It is important for copy editors who are experienced in SEO to understand these rules and conditions when writing about vertical agreements and block exemptions. By understanding the criteria that must be met in order for an agreement to qualify for block exemptions (even if it contains a hardcore restriction), copy editors can ensure that their content is accurate and informative for their readers.