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Competition: Shape of Commission’s policy on vertical restraints begins to emerge

United Kingdom
26/10/1998
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The Commission has adopted a Communication on the application of competition rules to vertical restraints. The proposal is to introduce a single wide block exemption regulation that will exempt all vertical agreements concerning intermediate and final goods and services except for a limited number of hardcore restraints from the application of Article 85(1) of the EC Treaty. In order to limit the exemption to companies which do not have significant market power, the regulation will establish one or two market thresholds, beyond which companies cannot benefit from the safe harbour. For companies with market shares above the thresholds there will be no presumption of illegality and they will be examined under Article 85(3).


The Commission intends to issue guidelines to assist companies carrying out an assessment of their vertical arrangements.

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