This Glossary is based on definitions from DG COMP’s Glossary of terms used in EU competition policy (© European Union, 2002) and the OECD’s Glossary of industrial organisation economics and competition law (© OECD, 1993). Each term is enriched with references of national case laws from the e-Competitions Bulletin and Concurrences Review.

Vertical agreement

Agreement or concerted Practice entered into between two or more undertakings each of which operates, for the purposes of the agreement, at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services.

See so-called "Vertical Guidelines": Guidelines on Vertical Restraints (OJ C 130, 19.5.2010, p. 1–46).

Related EU and national case law

German Competition Authority The Düsseldorf Higher Regional Court increases the fine against a drugstore company for vertical price fixing (Rossmann)

28 February 2018

Vertical price fixing - Düsseldorf Higher Regional Court raises fine against drugstore chain Rossmann* Yesterday the Düsseldorf Higher Regional Court imposed a fine of 30 million euros against Dirk Rossmann GmbH (’Rossmann’). With its decision the Court has significantly raised the fine imposed by (...)

Andrzej Kmiecik The Spanish Supreme Court voids an exclusive-supply agreement in the energy sector that was previously subject to a commitments decision by the EU Commission (Repsol)

7 February 2018

Spain’s Supreme Court has voided a contract including an exclusive-supply clause in favour of Repsol, following a judgment of the Court of Justice of the European Union (“ECJ”) in which the ECJ confirmed that national courts are not precluded from assessing potentially anti-competitive agreements (...)

Hellenic Competition Authority The Hellenic Competition Authority accepts remedies ending competition concerns related to franchise agreements in the pizza market (Roma Pizza)

18 January 2018

HCC has accepted commitments proposed by Roma Pizza S.A. to address competition concerns with regard to the terms of its franchise / distribution system following a complaint by former franchisees* By its unanimous decision no. 639/2017, the Chamber of the Hellenic Competition Commission (...)

German Competition Authority The German Federal Court of Justice confirms that the general prohibition of the use of price comparison engines by retailers is illegal (Asics)

12 December 2017

ASICS dealers allowed to use price comparison engines - Federal Court of Justice confirms Bundeskartellamt’s decision* In its decision of 12 December, 2017, published on 19 January, 2018, the Federal Court of Justice decided that ASICS may not forbid its dealers from using price comparison (...)

Andrzej Kmiecik The EU Court of Justice hands down an anticipated judgment on the possibility for a producer of luxury goods to restrict the selling of goods on third party online platforms outside of its selective distribution network (Coty)

6 December 2017

On 6 December 2017, the Court of Justice of the European Union (the ECJ or the Court) handed down its eagerly anticipated judgment in Coty (C-230/16). In general, the ECJ closely follows the opinion of Advocate General Wahl (AG Wahl), published on 26 July 2016, in essentially holding that: the (...)

Andrzej Kmiecik The EU Court of Justice rules in favour of restrictions on the use of platforms in a selective distribution system for luxury products (Coty)

6 December 2017

On 6 December 2017, the Court of Justice of the European Union (the “ECJ” or the “Court”) handed down its eagerly anticipated judgment in Coty (C-230/16). In general, the ECJ closely follows the opinion of Advocate General (“AG”) Nils Wahl, published on 26 July 2016 (see VBB on Compe- tition Law, (...)

Balthasar Strunz, Jens-Olrik Murach, Peter Alexiadis The EU Court of Justice rules in favour of restrictions on the use of platforms in a selective distribution system (Coty)

6 December 2017

This article considers how much the Coty Ruling has shed light on the extent to which a manufacturer can restrict the sales of its products over online platforms, especially in the wake of the recent German Case involving ASICS and basic principles developed at EU level to assess obligations (...)

Jean-François Bellis, Valerie Lefever Duty to state reasons: The General Court of the European Union annuls a Commission decision clearing the acquisition of a Dutch cable operator by an international group of telecommunications for failure to state adequate reasons (KPN)

26 October 2017

Le 26 octobre 2017, le Tribunal de l’Union européenne a annulé une décision de 2014 par laquelle la Commission européenne autorisait Liberty Global à acquérir le câblo-opérateur néerlandais Ziggo, moyennant le respect d’engagements. Liberty Global est un groupe international de câblo-opérateurs qui (...)

Adrien Alberini The Swiss Federal Tribunal renders a judgement taking a hard line on vertical restraints (BMW)

24 October 2017

In the wake of its much-awaited decision in the Gaba case, the Swiss Federal Tribunal – the highest Court in Switzerland – handed down its BMW judgment. Both cases concern vertical restraints (absolute territorial protection) and put an end to an issue that has been widely debated, namely whether (...)

Andrzej Kmiecik The EU General Court endorses selective distribution of spare parts for luxury watches (CEAHR)

23 October 2017

On 23 October 2017, the General Court of the European Union (the “Court”) dismissed an action brought by Confédération européenne des associations d’horlogers-réparateurs (“CEAHR”) against the European Commission (the “Commission”) for the annulment of the Commission’s decision to reject a complaint (...)

Frederick R. Burke, Yee Chung Seck The Vietnam National Assembly publishes 5th draft of the new Competition Law

15 September 2017

On 15 September 2017, the 5th draft of the new Competition Law (the 5th Draft) was published on the National Assembly Office Portal for public review and comments. The 5th Draft is being reviewed by the Standing Committee of the National Assembly and is expected to be passed in May 2018. The (...)

Frances M. Murphy The UK CMA annonces the launch of a market investigation into investment consultancy services and fiduciary management services

14 September 2017

On 14 September 2017, the Competition and Markets Authority (CMA) announced that, following a reference from the Financial Conduct Authority (FCA), it was launching a market investigation into investment consultancy services and fiduciary management services to and by institutional investors (...)

Andrzej Kmiecik The French Supreme Court refers a case on online platform sales ban back to the Paris Court of Appeal without waiting for an upcoming ruling of the EU Court of Justice on a similar case (Caudalie / eNova)

13 September 2017

On 13 September 2017, the French Supreme Court ordered the Paris Court of Appeal to rehear a case for failing to sufficiently substantiate its finding that an obligation in Caudalie’s selective distribution system constituted a probable restriction of competition by object. In the selective (...)

German Competition Authority The German Competition Authority issues a guidance note on the prohibition of vertical price fixing in the food retail sector

12 July 2017

Bundeskartellamt publishes guidance note on the prohibition of vertical price fixing in the food retail sector* Today the Bundeskartellamt has published a guidance note on the prohibition of vertical price fixing in the brick-and-mortar food retail sector. The aim of the guidance note is to (...)

UK Competition Authority The UK Competition Authority fines a lighting supplier for price resale maintenance (National Lighting Company)

20 June 2017

Lighting company fined £2.7 million for restricting online prices* A lighting supplier has been fined for requiring retailers to use a minimum price when selling their products online. The National Lighting Company (NLC) supplies light fittings to a range of retailers who then sell them on. (...)

OECD Competition Division The OECD holds a roundtable on rethinking the use of traditional antitrust enforcement tools in multi-sided markets

1 June 2017

A key challenge for competition agencies, particularly in digital markets, is the multi-sided nature of some of the markets that they analyse. In June 2017 the OECD held a hearing to look at an important question that competition agencies face: Are the tools traditionally used to define (...)

European Commission The EU Commission issues its final report on e-commerce sector

10 May 2017

Antitrust: Commission publishes final report on e-commerce sector inquiry* The European Commission’s final report on the e-commerce sector inquiry identifies business practices that may restrict competition. It allows the Commission to target its enforcement of EU antitrust rules in e-commerce (...)

German Competition Authority The Düsseldorf Higher Regional Court confirms that the general prohibition of the use of price comparison engines by retailers violates competition law (Asics)

6 April 2017

Düsseldorf Higher Regional Court confirms Bundeskartellamt’s decision on prohibition of use of price comparison engines* Yesterday the Düsseldorf Higher Regional Court confirmed the Bundeskartellamt’s decision of principle against the running shoes manufacturer Asics. According to the decision the (...)

Belgian Competition Authority The Belgian Competition Authority fines an undertaking for resale price maintenance in the fresh bakers’ yeast market (Algist Bruggeman)

23 March 2017

The Belgian Competition Authority fines Algist Bruggeman 5.489.000 euros for resale price maintenance and impeding low priced competitors regarding fresh bakers’ yeast* The Investigation and Prosecution Service of the Belgian Competition Authority (BCA) fines Algist Bruggeman nv and her mother (...)

Joseph Vogel Competition rules applicable to motor vehicle distribution in 2010-2011: New regime mostly positive but ongoing debates in the case law

13 March 2017

This article is an update for the year 2010-2011 of a synthesis article on national case laws on antitrust and automobile distribution: See: Joseph Vogel, Competition law and the automobile industry: Overview of national European case laws, 22 February 2005, e-Competitions, N°21786, (...)

Joseph Vogel Competition law and the automobile industry: Overview of national European case laws

13 March 2017

The motor vehicle sector continues to be the subject of regular litigation under the competition rules, even though the overall volume of cases brought has been marked by the drastic decrease in ordinary terminations since the entry into force of Regulation n° 1400/2002/EC. in light of the (...)

German Competition Authority The German Competition Authority issues an interim report on conditions for the supply of raw milk

13 March 2017

Interim report on conditions for the supply of raw milk* The Bundeskartellamt has today published an interim report on its administrative proceeding concerning conditions of supply for raw milk. In the report the authority presents key results of its investigations so far and offers initial (...)

Panayiotis Agisilaou, Stephanie Theodotou The Supreme Court of Cyprus confirms the €31 Million imposed by the Commission for the Protection of Competition on nine commercial banks for anticompetitive practices (JCC)

3 March 2017

On 27/01/2016 the Cyprus Commission for the Protection of Competition (“CPC”) ended its investigation against eight commercial banks (Bank of Cyprus Public Company Ltd (“BOC”), Marfin Popular Bank Public Co Ltd (“Marfin”), Hellenic Bank Ltd (“Hellenic Bank”), Alpha Bank Cyprus Ltd (“Alpha Bank”), (...)

Gönenç Gürkaynak The Turkish Competition Board publishes the new block exemption for vertical agreements in the motor vehicle sector

24 February 2017

Introduction The New Block Exemption Communique 2017/3 for Vertical Agreements in the Motor Vehicle Sector in Turkey was published in the Official Gazette on February 24 2017. Communique 2017/3 revoked the Block Exemption Communique 2005/4 for Vertical Agreements and Concerted Practices in the (...)

Ercüment Erdem The Turkish Competition Authority publishes its Motor Vehicles Sector Report and a New Block Exemption Communiqué on Vertical Agreements in Motor Vehicles Sector

24 February 2017

Introduction The motor vehicles sector is one of the biggest sectors in today’s world, and it has enormous impact in a variety of associated sectors, such as iron and steel, light metals, petrochemical, tire, plastics, tourism, and transportation. The automotive industry is one of the major (...)

Croatian Competition Authority The Croatian Competition Authority fines an undertaking for resale price maintenance in the white goods and small household appliances market (Gorenje)

14 February 2017

Gorenje Zagreb fined more than HRK 1.5 mil for resale price maintenance* The Croatian Competition Agency (CCA) imposed a fine on the undertaking Gorenje Zagreb amounting to HRK 1.557,000. The CCA found within the proceeding that Gorenje Zagreb entered into a prohibited agreement containing (...)

Ludovic Bernardeau Resale price maintenance: The French Competition Authority fines a supplier for resale price maintenance in web distribution (Atelier du vin)

26 January 2017

Première décision de l’année 2017 pour l’Autorité de la concurrence, par laquelle cette dernière sanctionne, dans le secteur des arts de la table, un fournisseur pour s’être entendu avec certains de ses distributeurs pour fixer les prix de revente des articles commercialisés sous sa marque “Atelier du (...)

German Competition Authority The German Competition Authority issues a a draft guidance note on vertical price fixing in the brick-and-mortar food retail sector

25 January 2017

Publication of guidance note on the prohibition of vertical price fixing in the food retail sector - public consultation* oday the Bundeskartellamt published a draft guidance note on vertical price fixing in the brick-and-mortar food retail sector. Interested parties are invited to submit (...)

Silke Heinz The German Federal Cartel Office publishes a draft notice on resale price maintenance in the food retail sector

25 January 2017

German FCO publishes draft notice on RPM in the food retail sector* On January 25, 2017, the FCO published its long-awaited draft notice with guidance on resale price maintenance (RPM) related questions in the food retail sector in Germany. The draft is up for public consultation, and (...)

Andrzej Kmiecik The German Federal Cartel Office publishes a draft guidance note on the prohibition of vertical price fixing in the brick-and-mortar food retail sector

25 January 2017

On 25 January 2017, the German Federal Cartel Office (“FCO”) published a draft guidance note on the prohibition of vertical price fixing in the brick-and-mortar food retail sector. The guidance note follows proceedings concluded in December last year, in which the FCO imposed fines amounting to € (...)

German Competition Authority The German Competition Authority fines furniture manufacturers for vertical price fixing (aeris )

12 January 2017

Bundeskartellamt imposes fines on account of vertical price fixing in the sale of furniture* The Bundeskartellamt has concluded its cartel proceedings against furniture manufacturers for enforcing resale price maintenance on retailers. Fines totalling 4.43 million euros were imposed on the (...)

Andrzej Kmiecik The EU General Court orders the European Union to pay damages for excessively long court proceedings for first time (Industrial bags cartel)

10 January 2017

On 10 January 2017, the General Court (“GC”) issued a judgment in which it ordered the European Union to pay Gascogne and Gascogne Sack Deutschland (“Gascogne”) a total of about € 57,000 in damages for the excessive duration of previous proceedings before the GC in connection with the Industrial (...)

Zoya Todorova The Bulgarian Supreme Administrative Court confirms a fine of over 8 million euros for several hard-core vertical restrictions (Hyundai)

28 December 2016

Bulgaria: First-instance court confirms a fine of over € 8 mln on the distributor of Hyundai in Bulgaria for several hard-core vertical restrictions* At the very end of 2016, the Bulgarian Supreme Administrative Court in its first-instance 3-member panel, confirmed one of the highest fines ever (...)

Eleonora Mateina The Bulgarian Supreme Administrative Court inflicts a record fine for prohibited vertical agreements within a selective distribution system of cars (Hyundai)

28 December 2016

After almost a 4-year appeal procedure, in December 2016 the Supreme Administrative Court of the Republic of Bulgaria (the “Supreme Court”), acting as a court of first instance, confirmed one of the biggest fines ever imposed by the Bulgarian Commission for Protection of Competition (the “CPC”) (...)

German Competition Authority The German Competition Authority fines firms in the food retail sector for vertical price fixing (Neumünster)

15 December 2016

Fine proceedings for vertical price fixing in the German food retail sector concluded* The Bundeskartellamt has concluded its last three pending proceedings concerning vertical price fixing in the food retail sector. The authority imposed fines totalling 18.3 million euros on EDEKA (...)

Danish Competition Authority The Danish Competition Council considers that agreement between service providers on their subscription price for service on natural gas boilers is anticompetitive (HMN)

30 November 2016

Denmark: The Danish Competition Council finds that agreement between service providers on their subscription price for service on natural gas boilers is illegal.* On November 30 2016, The Danish Competition Council (“DCC”) found that HMN Naturgas I/S (“HMN”), DEBRA – Energibranchen (“DEBRA”), (...)

Joseph Vogel, Louis Vogel The Paris Court of Appeal confirms that the Competition Authority can sue anti-competitive agreements even under the threshold of the de minimis rule (SNCF/ Expedia)

11 November 2016

La SNCF, en situation de monopole sur le marché français du transport ferroviaire, avait conclu avec une agence de voyages un accord de partenariat qui réorientait exclusivement ses clients vers leur nouvelle agence de voyage en ligne commune : le site voyage-sncf.com. La Cour d’appel de Paris (...)

Michele Giannino The Italian Supreme Court rules that the reorganization of the Italian distribution network of a car manufacturer does not breach competition law (Volkswagen)

13 October 2016

By the recent Volkswagen Group Italia (VGI) judgement , the Italian Supreme Court or Court of Cassation (the Court) has ruled that the plan for the reorganization of its Italian distribution network implemented by a German car manufacturer did not breach competition. The Court considered the (...)

Ahmet Fatih Ozkan The Turkish Competition Authority decides that recommending the use of a certain engine oil brand in authorised service centres does not amount to a vertical restraint (Castrol / Dogus Oto)

13 October 2016

This case note analyses the decision of the Turkish Competition Authority (TCA) in which it has decided that recommending the use of only Castrol branded engine oils in service centres authorised by Volkswagen and Dogus Oto, coupled with the practice of voiding the manufacturer’s warranty for (...)

Jean-Christophe Roda United States : Antitrust Agencies issue Guidance to Human Ressources Professionals regarding the Employment Marketplace

1 October 2016

En octobre 2016, le Department of Justice et la Federal Trade Commission ont publié des lignes directrices intitulées “Antitrust Guidance for Human Ressources Professionals”. Comme son intitulé l’indique, il s’agit d’un document qui s’adresse aux professionnels du secteur des ressources humaines et qui (...)

French Competition Authority The French Competition Authority carries out unannounced inspections on the market of manufacturing and distribution of sandwiches intended to food supermarkets

15 September 2016

The General Rapporteur of the Autorité de la concurrence states that unannounced inspections were carried out on September 15 in the sector of manufacturing and distribution of sandwiches intended to food supermarkets.* On September 15th, following authorisation from the liberty and custody (...)

Croatian Competition Authority The Croatian Competition Authority accepts remedies proposed by a distributor of motor vehicle parts and accessories suspected to have concluded anticompetitive vertical agreements (Drezga)

6 September 2016

CCA accepted committments by Drezga d.o.o.* The Croatian Competition Agency (CCA) opened the ex-officio infringement proceeding against the undertaking Drezga d.o.o., an authorised distributor for Husqvarna Group products, based on the fact that the contracts this undertaking concluded with (...)

Hungarian Competition Authority The Hungarian Competition Authority fines a distributor of meat products for price resale maintenance (Pick)

2 August 2016

Pick’s pricing practice is unlawful – The GVH has imposed a fine due to the fixing and setting of and minimum prices during temporary sales (promotions)* According to the decision of the Hungarian Competition Authority (Gazdasági Versenyhivatal – GVH), from January 2009 to December 2014, Pick (...)

Vincent Wellens The Luxembourg Competition Council issues a decision stressing that a resale price maintenance practice constitutes a hard core restriction (SCAB)

26 July 2016

Clarification of applicable criteria The Competition Council clarified the applicable criteria, which will undoubtedly help companies to (better) assess whether their practices constitute an illegal RPM practice. Such criteria are most welcome. Indeed, even though the European Commission has (...)

Silke Heinz The German Federal Cartel Office terminates antitrust proceedings against a toy manufacturer (Lego)

18 July 2016

No toying around - the FCO makes Lego change its discount system to better accommodate online sales.* The German Federal Cartel Office (“FCO”) terminated antitrust proceedings against toy manufacturer Lego on July 18, 2016, following Lego’s agreement to change its current rebate system. Lego will (...)

Hellenic Competition Authority The Hellenic Competition Authority opens an ex-officio investigation into the luxury cosmetics market (L’Oréal)

14 July 2016

Ex-officio investigation into the luxury cosmetics market, for alleged infringements of competition rules.* Ex-officio investigation into the luxury cosmetics market, for alleged infringements of competition rules. The Grand Chamber of the HCC will convene on the 13th of October 2016 to (...)

Isabelle Rahman The Frankfurt Court of Appeals submits preliminary reference on how to treat bans on sales via third-party internet platforms in selective distribution systems (Coty)

1 July 2016

European Court of Justice to Rule on Legality of Online Sales Bans*An appeal court in Frankfurt has asked the European Court of Justiceto clarify the application of the competition rules to online sales. The Frankfurt court made its request in the context of a dispute between a leader in beauty (...)

OECD Competition Division The OECD holds a roundtable on disruptive innovations in legal services

13 June 2016

Executive summary, by the Secretariat * 1. The Roundtable on Disruptive Innovations in Legal Services discussed the way that current legal professional regulations are being (i) challenged by new innovations and (ii) potentially standing in the way of further innovation. The Chairman, Alberto (...)

Andrzej Kmiecik The UK’s Competition and Markets Authority fines a company for retail price maintenance on online sales (ITW)

24 May 2016

On 24 May 2016, the UK’s Competition and Markets Authority (“CMA”) fined ITW Limited, a supplier of refrigerators, £ 2,298,820 for retail price maintenance on online sales. From 2012 to 2014, ITW required dealers to adhere to its minimum advertised price policy for Foster commercial fridges and (...)

Alexandr Svetlicinii The Moldovan Competition Authority accepts commitments from tour operators and airlines in the charter air passenger transport market (Scavolin)

19 May 2016

On 4 November 2011 the Moldovan Competition Authority (CC) concluded its investigation into the alleged anti-competitive practices on the market for charter air passenger transport by accepting a series of commitments offered by the tour operators and airline companies involved. The case (...)

Glossary

A

Absolute territorial protection • Abuse of a dominant position • Access to essential facility • Agency agreement • Agreement • Ancillary restraints

B

Bid rigging • Block exemption (regulation) • Boycott • Brand competition • Buyer power

C

Cartel • Clearance phase I (merger) • Clearance phase II (merger) • Collecting society • Commitments (or remedies) • Complaint • Concerted practice • Consumers’ associations • Contrat d’agence • Cross subsidisation

D

Damages • De minimis notice • Distribution agreement • Dominant position

E

Economic efficiency • Effect on trade between member states • Entry barriers • Essential facility • Excess prices • Exchange of information • Exclusive distribution • Exclusive purchasing agreement • Exclusive right • Exhaustion • Extra-territoriality

F

Failing firm defence • Fine • Franchising

H

Hard core restrictions

I

Intellectual property right (IPR) • Interim measures • International competition network (ICN)

J

Joint control • Joint venture

L

Leniency (programme) • Licensing

M

Market • Market power • Market share • Merger

N

Non-competition clause • Notification • Notion of control • Nullity

O

Oligopoly

P

Parallel trade (parallel imports) • Periodic penalty payment • Predatory pricing • Price discrimination • Price regulation • Price-fixing agreement • Privatisation • Public undertaking

R

Refusal to deal/sell • Relevant market • Remedies (antitrust) • Resale price maintenance (RPM) • Rule of reason

S

Sector inquiry • Selective distribution • Services of general economic interest • Single branding • Spill-over effects

T

Trustee • Tying or tied selling

U

Undertaking

V

Vertical agreement • Vertical restraints (or restrictions)

W

Withdrawal or abandonment of concentrations