The EU Vertical Agreements Block Exemption Regulation (VABER) is a set of guidelines and rules enforced by the European Union to regulate anti-competitive behaviour in the market. It applies to vertical agreements between suppliers and distributors, such as agreements on the supply, distribution, and resale of goods or services.
The VABER helps to ensure that businesses are not abusing their market power to restrict competition in the market. It enables businesses to enter into agreements with each other without the risk of being fined by the EU or national competition authorities. However, not all agreements are exempt from scrutiny under the VABER, and businesses need to be aware of the regulations to avoid potential antitrust violations.
One of the main benefits of the VABER is that it provides businesses with legal certainty and reduces the administrative burden on companies. It is also beneficial for small and medium-sized enterprises (SMEs) that may lack the resources to navigate complex antitrust regulations.
Under the VABER, businesses are allowed to enter into certain vertical agreements that do not have a significant impact on competition. For example, the regulation allows for exclusive distribution agreements, where a supplier agrees to only sell its products to one distributor within a particular territory. The VABER also permits selective distribution agreements, where a supplier limits the number of distributors that can sell its products based on specific criteria.
However, there are certain restrictions on vertical agreements that are not exempt from scrutiny under the VABER. These include agreements that have horizontal effects, such as agreements between competitors, or agreements that restrict competition in the market, such as agreements that fix prices.
To ensure compliance with the VABER, businesses should seek legal advice before entering into any vertical agreements. They should also ensure that their agreements are drafted clearly and in compliance with the regulations, to avoid potential antitrust violations.
In conclusion, the EU Vertical Agreements Block Exemption Regulation is an essential regulatory framework that businesses should be aware of when entering into vertical agreements. By following the guidelines and rules set out by the regulation, businesses can ensure that they are not violating antitrust laws and are contributing to a healthy, competitive market.