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Agreements which prevent, restrict or distort competition, whether by object or effect are anti-competitive and prohibited under EU and UK competition law. Economic analysis provides evidence of anti-competitive effect, but this is unnecessary for certain types of agreements which are deemed to have an anti-competitive object—such as price-fixing and market sharing.
Agreements, decisions of associations of undertakings and concerted practices that have as their object or effect the prevention, restriction or distortion of competition may be prohibited under Article 101 TFEU and/or the Competition Act 1998, s 2.
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R&D agreements—drafting for the UK R&D BEO 2022—checklist This Checklist sets out the essential points that should be considered when drafting new Research and Development (R&D) agreements, or updating existing R&D agreements, to assess whether they fall within the block exemption provided under the Competition Act 1998 (Research and Development Agreements Block Exemption) Order 2022 (UK R&D BEO), SI 2022/1271. This Checklist is not intended to be a comprehensive guide to the UK R&D BEO, but should be used where a commercial lawyer wants to ensure that an R&D agreement falls within the UK R&D BEO and the accompanying CMA Guidance on Horizontal Agreements (2023 Horizontal Guidance). Introduction to the UK R&D BEO Any agreement which affects trade or restricts competition in the UK may be subject to the prohibition on anti-competitive agreements under Chapter I of the Competition Act 1998 (CA 1998) (the Chapter I prohibition). However, an agreement will not be prohibited if it: • meets the criteria for exemption under CA 1998, s 9, or • benefits from...
Vertical agreements—drafting for MVBEO—checklist This Checklist sets out the essential points that should be considered under The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) Order 2023 (No 2) (MVBEO) when drafting new vertical agreements, or updating existing vertical agreements, in relation to motor vehicle aftermarkets for the provision of repair and maintenance services or the distribution of motor vehicle aftermarket goods (together, the motor vehicle aftermarket). This Checklist is not intended to be a comprehensive guide to the MVBEO but should be used where a commercial lawyer wants to ensure that the vertical agreement falls within the MVBEO (and any guidance issued under it). For further information, see: CMA Guidance: MVBEO. A flowchart is also provided at the end of this Checklist, setting out the main steps to follow when assessing whether an agreement falls under the MVBEO. Introduction to MVBEO Any agreement which affects trade and restricts competition in the UK may be subject to the prohibition on anti-competitive agreements under the provisions of Chapter I of the Competition...
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Introduction to the application of Article 101 TFEU to vertical agreements This Practice Note refers to the Vertical Block Exemption Regulation, Commission Regulation 2022/720 (VBER 2022) and the Commission’s 2022 Guidelines on Vertical Restraints (2022 Guidelines). What is a vertical agreement? A vertical agreement is an agreement entered into by separate undertakings operating at different levels in the supply chain, for example, a manufacturer and its distributors. A supplier may wish to have one or multiple resellers for its goods or services, through one or more levels of the supply chain, such as an EU or country-specific importer and further resellers operating at the wholesale and retail levels. These activities will all constitute vertical agreements. Vertical agreements are generally agreements between non-competitors. This is in contrast to horizontal agreements, which are agreements between competitors. Vertical agreements can take many different forms. The key types include: (i) agency; (ii) exclusive distribution; (iii) selective distribution; (iv) ‘free’ or non-exclusive distribution; (v) franchising; and (vi) subcontracting. Each of these are discussed in more...
Vertical agreements and UK competition law under the VBER 2010 [Archived] ARCHIVED: This Practice Note has been archived and is not maintained. It was drafted for the previous Vertical Restraints Block Exemption Regulation 330/2010 (VBER 2010), which was replaced in the UK by The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (VABEO) with effect from 1 June 2022. The VBER 2010, which applied in UK law as a retained EU block exemption, expired on 31 May 2022 and was replaced by the VABEO with effect from 1 June 2022. Under Article 15 VABEO, there was a 12 month transition period (until 1 June 2023) to accommodate pre-existing vertical agreements already in force before 1 June 2022 which (immediately before 1 June 2022) satisfied the conditions for exemption provided in the VBER 2010 but which did not satisfy the conditions for exemption provided in the VABEO. This Practice Note is therefore for background information only. For an assessment of vertical agreements under the VABEO, see further, Introduction...
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In a written intellectual property licence that satisfies the English law requirements for creation of a contract and that is not in conflict with competition laws, can royalties be contractually agreed to be paid in perpetuity? It has been assumed that this Q&A refers to validly created licences and individual IP right licence requirements (ie whether must be in writing and signed etc) have not been covered. As such in conducting our research, we have focused on IP licence agreements in which royalties are payable. There are many different types of UK IP licence. Such licences are governed by IP right specific laws such as the Copyright, Designs and Patents Act 1988, the Patents Act 1977 or the Trade Marks Act 1994. Technology transfer licensing is subject to UK and EU competition laws. Licences are also governed by common law. A perpetual licence may be granted (and the payment of royalties tied to the term of the licence). However, the period of the licence cannot extend the...
Can a non-exclusive distributor appointed to a territory be prevented from selling outside that territory under UK and EU competition law? Agreements between entities operating at different levels in the supply chain are often called ‘vertical agreements’. Distribution agreements are a type of vertical agreement. For more information, see: Distribution—overview and Lexology Panoramic: Distribution And Agency. There are several different types of distribution arrangement that can be utilised in a supply chain, including exclusive, non-exclusive (or ‘free’) and selective distribution. In the UK and EU, distribution agreements may benefit from an exemption from competition law restraints, provided they do not contain any prohibited or hardcore restrictions. Distribution and UK Competition Law Chapter I of the Competition Act 1998 and the vertical restraints block exemption order Chapter I of the Competition Act 1998 (CA 1998) prohibits agreements which prevent, restrict or distort competition within the UK. For further information, see Practice Notes: Chapter I prohibition and Introduction to the application of Chapter I to vertical agreements. Anti-competitive...
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