Newsletter from EU and Competition: New rules on vertical agreements – time to review your contracts and compliance programs

On 1 June 2022, the European Commission’s newly revised Vertical Block Exemption Regulation and accompanying Vertical Guidelines entered into force. The new rules contain several important changes to the legal regime governing distribution of goods and services, and are stricter in some regards (in relation to dual distribution and so-called parity obligations), but on the other hand provide greater flexibility for suppliers to impose certain restrictions on their distributors’ active and online sales.

Many distribution arrangements currently in place will be affected. For existing agreements, the Vertical Block Exemption Regulation allows for a one-year transitional period ending 31 May 2023. In light of the significant changes introduced, companies should immediately initiate a review of their existing vertical agreements in order to align them with the new rules.

Read the full newsletter and some of the main changes to consider here.


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