The EU Commission and UK Competition Authority propose modifications to their antitrust rules on distribution agreements which diverge significantly, creating legal challenges for agreements caught by both sets of rules

1. Summary The European Union and the United Kingdom have each proposed modifications of their antitrust rules on distribution [1]. The proposals diverge significantly on common distribution practices, creating legal challenges for distribution agreements caught by both sets of rules. Dual distribution: The U.K. proposes to preserve the status quo. Under current rules, suppliers who sell through both captive outlets and independent dealers benefit from a 30% market share safe harbor. Under the pending U.K. proposals, there is no need to re-engineer distribution arrangements or create information barriers. The EU, however, proposes to limit the safe harbor threshold to 10% for information sharing between suppliers and resellers in a dual distribution context. Parity or most favoured

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Authors

  • Skadden, Arps, Slate, Meagher & Flom (London)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)
  • Skadden, Arps, Slate, Meagher & Flom (Brussels)

Quotation

Bill Batchelor, Ingrid Vandenborre, Frederic Depoortere, Giorgio Motta, The EU Commission and UK Competition Authority propose modifications to their antitrust rules on distribution agreements which diverge significantly, creating legal challenges for agreements caught by both sets of rules, 9 July 2021, e-Competitions July 2021, Art. N° 104129

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