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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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
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