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VABER

Nov 04, 20252 min read

Exemptions

Key Principles

  1. The agreements must be vertically or horizontally coordinated.
  2. The agreement’s object or effect must be to improve the production, distribution, sale, advertising, or promotion of goods and services.
  3. The agreement cannot create a significant impediment to effective competition.

Examples of Exempted Agreements

  • A group of manufacturers agreeing on standardization of components for their products
  • A retailer and manufacturer collaborating on marketing campaigns
  • Competitors sharing research and development costs

Important Note

These Block Exemptions do not automatically exempt an agreement from the prohibition in Art 101 TFEU. The parties must still satisfy the conditions of the exemption, which requires that the agreement’s object or effect is to improve the production, distribution, sale, advertising, or promotion of goods and services.

Example Online Retail Ban

A ban on online retail might seem counterintuitive, but it’s actually possible under certain circumstances within the scope of the Vertical Agreements Block Exemption Regulation (VABER).

The key lies in Article 4(c) of the VABER, which states that an exemption from the competition rules can be granted if the agreement:

“…does not significantly impede effective competition in the market or markets in question…”

In this context, a ban on online retail could be considered acceptable under the VABER if it’s deemed to have minimal impact on effective competition. This might occur when:

  • Limited geographic scope: The ban only applies within a specific region or country, leaving room for e-commerce activities in other areas.
  • Alternative offline channels available: Consumers still have access to physical stores, catalogs, or other offline channels for purchasing the products, ensuring some level of competition remains.
  • No significant market power: The company holding the IP rights doesn’t possess a dominant market position, making it unlikely that they could use this ban as a means to exclude competitors.

In such scenarios, the VABER might permit a ban on online retail while still allowing for competition and innovation in other areas of the market.

Please note that this is a hypothetical example, and actual circumstances would need to be carefully assessed to determine whether an exemption under the VABER could be granted.

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