Priority clause: The Court of Justice of the European Union answers a preliminary question asked by a Latvian court on the classification of a "priority clause" inserted in a distribution contract as a cartel, by recalling the alternative between the anti-competitive object and effects and the conditions for granting an individual exemption, without ever referring to the exemption regulation on vertical agreements (Visma Enterprise / Konkurences padome)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The Latvian competition authority was asked to review the validity of a "priority clause" in the distribution contracts between the manufacturer of an accounting software and its distributors. The priority mechanism worked as follows: the distributor who identified a potential customer had to report the existence of a "potential transaction" on a database held by the head of the network and recorded certain data provided by the customer regarding his profile and needs. Thus, the distributor had a "priority" on the potential conclusion of the contract with this customer, unless the latter objected. According to the network head, the mechanism had its

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Anne-Sophie Choné-Grimaldi, Priority clause: The Court of Justice of the European Union answers a preliminary question asked by a Latvian court on the classification of a "priority clause" inserted in a distribution contract as a cartel, by recalling the alternative between the anti-competitive object and effects and the conditions for granting an individual exemption, without ever referring to the exemption regulation on vertical agreements (Visma Enterprise / Konkurences padome), 18 November 2021, Concurrences N° 1-2022, Art. N° 105294, pp. 80-81

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