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Selective Distribution Agreement Competition Law

Selective distribution agreements have gained in importance with Communiqué No. 2002/2, Communiqué No. 2005/4 and Communiqué No. 2008/2. The impact of the selective distribution system, in which resellers meeting the relevant criteria and the diversity of products that are limited may vary due to several competitiveness factors. The restrictions imposed on selective distribution make it possible, on the one hand, to achieve efficiency gains on the relevant market and, on the other hand, to have a negative impact on competition depending on market conditions. It is therefore important to assess, on a case-by-case basis, the positive and negative effects of the restrictions imposed by selective distribution. The advantage of VABER is generally not available for distribution agreements concluded by actual or potential competitors. a non-manufacturer/intermediary) with a view to their resale by the trader. A distribution agreement is an example of a “vertical” agreement that is an agreement between parties operating at different levels of the supply chain.

Three main reasons were given for the decision to use a selective distribution system; and those reasons underlie the conditions for establishing that a selective distribution system is compatible with EU competition law. The three general reasons are as follows: article 4 of Law No. 4054 on the Protection of Competition (“Law No. 4054”) provides that agreements between undertakings intended, having the foreseeable effect or effect of preventing, distorting or restricting competition are illegal and prohibited. .