Threshold: HA = aggregate market share 10%;
VA aggregate market share 15%
NOT cover hardcore restrictions:
price fixing and export bans
Volk
NAAT
Aggregate market share under 5% AND
HA = aggregate annual turnover €40 mill;
VA Supplier’s annual turnover €40 mill
Can exempt hardcore restrictions BUT
national enforcement agencies may not
Vertical Block Exemption (formerly Reg 330/2010)
ONLY applies to Vertical Agreements:
Defined by Art 1(1)(a) BE
Art 3(1) BE: Supplier and Buyer’s
share in their respective markets is under 30%
Not cover restriction listed in Art 4 BE:
price fixing and passive sales (Art 4(b))
Art 5 BE: non-compete provisions of
over 5 years are also excluded
Art 103(3)
Art101(3): No breach if ALL 4 requirements met
Agreements must improve production
or distribution of goods or the promotion
of technical or economic progress
Consumers must get a fair
share of the resulting benefit
Agreement imposes
indispensible restrictions
(they are necessary)
Agreement does not allow for the
substantial avoidance of competition
‘MAY’ = only need demonstrate potential effect
Agreement outside EU which coordinate prices at which
GOODS SOLD IN THE EU can be sufficient: Woodpulp
Wholly internal = national competition law
STM test: sufficient to prove likelihood
trade would be affected
directly/indirectly, actually or potentially
Restriction Effect OR Object
sufficient: Polypropylene
Art 101(1) TFEU: list of anti
competitive agreements
Art 101(a): Price fixing e.g. AKZO
Art 101(b) TFEU: Limiting markets
'Absolute Territorial Protection': Constan v Grundig
BUT 'Exclusive Territory Agreements'
allowed: STM v MU
Vertical export bans
Possibility of anti-competitive effect: STM v MU factors = (i) Nature and quantity (ii)
Position and size of parties (iii) Isolated nature of agreement/position in series (iv)
Severity of clauses (v) Opportunities allowed for other commercial competitors
NOT have to be formal
agreement: Quinine Cartel
'between undertakings' = 2 separate legal entities
Vertical Agreement: Constan v Grundig
Horizontal Agreement
Inc agreement, association
decision and concerted practice
Concerted practice: Dyestuffs - 'substituted
practical co-operation for risks of competition'
Parallel conduct: behaviour such as immeditately
raising price after competitors will not be sufficient
(Woodpulp: alt explanation)
More likely to be innocent parallel conduct in Oligopoly:
Dyestuffs: not Oligoply ∴ should have been competition