Chapter I prohibition definition

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Key IP considerations in vertical agreements—checklist

Key IP considerations in vertical agreements—checklist This Checklist focuses on the IP aspects of vertical agreements. It covers the key competition law considerations and considers the following issues: the parties to and structure of vertical agreements, identifying the IP, the scope of the licence, restricting the use of the IP, IP ownership, third-party IP, protection of licensor’s IP and warranties and indemnities. On 10 May 2022, the European Commission adopted the EU Vertical Restraints Block Exemption, Regulation (EU) 2022/720 (EU VBER) and Vertical Guidelines. EU VBER entered into force on 1 June 2022 and will expire on 31 May 2034. See Practice Note: The Vertical Block Exemption Regulation 2022/720. On 9 May 2022, the UK government laid before Parliament the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (UK VABEO), SI 2022/516. The UK VABEO replaced the UK Retained VBER on 1 June 2022 and will expire on 1 June 2028. See Practice Note: The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022. Both the UK and EU regime...

Appointing a distributor in the UK—checklist

Appointing a distributor in the UK—checklist This Checklist sets out the main issues for a manufacturer or wholesaler to consider when appointing a distributor. This Checklist considers preliminary and legal issues to be considered before appointing a distributor and commercial terms that manufacturers or wholesalers may wish to address when drafting and negotiating a distribution agreement. For further guidance, see also Practice Note: How to appoint a distributor. Preliminary Issue Consideration Is distribution the right channel to market?Consider the options: • agent • joint venture • direct sales • distributor Agency:• principal has contractual relationship, and closer business contact, with customer • principal can take advantage of the agent's expertise and contacts in the territory • may give rise to a taxable presence for the principal in the territory • if a commercial agent under the Commercial Agents (Council Directive) Regulations 1993 (the Commercial Agents Regulations), SI 1993/3053, then the agent will have special rights (particularly with reference to notice of termination and payment on termination) that under...

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Spire Healthcare Limited, Spire Healthcare Group plc and consultant ophthalmologists (50782–1) [Archived]

Spire Healthcare Limited, Spire Healthcare Group plc and consultant ophthalmologists (50782–1) [Archived] CASE HUB ARCHIVED–this archived case hub reflects the position at the date of the decision of 1 July 2020; it is no longer maintained. See further, timeline Case facts Outline CMA Chapter I CA98 investigation alleging that Spire Healthcare Limited and its parent company Spire Helathcare Group plc and seven ophthalmologists had breached UK competition law by engaging in unlawful price fixing (Case 50782–1). Latest developments On 1 July 2020, the CMA issued its infringement decision, finding that Spire Healthcare Limited and its parent company Spire Healthcare Group and seven consultant ophthalmologists had breached the Chapter I prohibition by engaging in unlawful price fixing The CMA imposed a fine totalling £1.2m, which reflected a 20% discount for settlement. One of the consultant ophthalmologists received immunity under the CMA’s leniency programme. Parties Spire Healthcare Limited and Spire Helathcare Group plc (together Spire): Spire provides private healthcare throughout the UK. It is the second largest...

Supply of groundworks products to the construction industry [Archived]

Supply of groundworks products to the construction industry [Archived] CASE HUB ARCHIVED–this archived case hub reflects the position at the date of the decision of 17 December 2020; it is no longer maintained. See further: timeline and commentary. Case facts Outline CMA Article 101 TFEU/Chapter I investigation into alleged price-fixing in the market for the supply of groundworks products to the construction industry. Latest developments On 17 December 2020, the CMA issued its infringement decision finding that Vp plc, MGF (Trench Construction Systems) Ltd, and Mabey Hire Ltd, breached the Chapter I prohibition and Article 101 TFEU by: (i) sharing confidential information on future pricing and commercial strategy; and (ii) coordinating their commercial activities to reduce uncertainty. The CMA imposed a fine totalling £14.9m on Vp plc and MGF (Trench Construction Systems) Ltd. Mabey Hire Ltd was not fined as it was granted immunity under the CMA’s Leniency Programme. Parties • MGF (Trench Construction Systems) Ltd (MGF) (parent company, MGF Limited): MGF is...

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Training materials—the Vertical Agreements Block Exemption and Distribution Agreements (UK)

Training materials—the Vertical Agreements Block Exemption and Distribution Agreements (UK) This Precedent presentation has been designed as a training aid that you can use to provide an overview to junior competition lawyers, non-competition lawyers or commercial colleagues on the application of The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (UK VABEO) to distribution agreements. It provides a brief outline of the application of the Chapter I prohibition, a detailed summary of the key provisions of the UK VABEO, and the general position if the agreement falls outside the UK VABEO. The training materials are customisable. This training pack has been prepared in PowerPoint and it therefore cannot be downloaded to Word from this page. Contents • Overview of the Chapter I prohibition • The ‘safe harbour’ of the UK VABEO – key provisions • Outside the UK

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Can a non-exclusive distributor appointed to a territory be prevented from selling outside that territory under UK and EU competition law?

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...

Can a supplier prevent or restrict an exclusive or non-exclusive distributor from making any sales of products via website or any other internet based platform?

Can a supplier prevent or restrict an exclusive or non-exclusive distributor from making any sales of products via website or any other internet based platform? This Q&A assumes that the query refers to a UK based manufacturer and distributor appointed in respect of UK territories. Any agreement which affects trade or restricts competition in the UK may be subject to the prohibition on anti-competitive agreements under the provisions of Chapter I of the Competition Act 1998 (CA 1998). However, an agreement will not be prohibited if it: • can be explicitly justified on efficiency grounds (under CA 1998, s 9), or • benefits from a relevant block exemption With effect from 1 June 2022, the relevant block exemption providing a ‘safe harbour’ in the UK is the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022 (UK VABEO), SI 2022/516. The UK VABEO is supplemented by CMA guidance. The existence of any of the hardcore restrictions set out in UK VABEO, SI 2022/516, art 8 will remove the benefit of the...

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UK Competition law—daily round-up (04/07/2025)

A round-up of UK competition law developments, including the latest UK merger control and private action developments.

Competition weekly highlights—3 July 2025

This week's edition of Competition weekly highlights includes, from a UK perspective: (1) the Government publishing the Enterprise Act 2002 (Amendment of Section 58 Considerations) Order relating to the application of public considerations in media mergers, and (2) the CAT’s judgment finding that Mastercard and Visa’s unregulated Multilateral Interchange Fees is an object infringement under UK and EU competition law. This week's highlights also includes, from an EU perspective: (1) a General Court judgment dismissing an action against Commission’s decision to investigate, under Article 22 EUMR, Brasserie Nationale/Boissons Heintz merger; (2) the Court of Justice judgments confirming the General Court’s judgment on the Commission’s decision to approve the acquisition of certain E.ON generation assets by RWE, (3) a General Court judgment dismissing two appeals against Commission’s re-adopted decision on Spanish DTT aid, (4) the Court of Justice judgment upholding an annulment of the Commission’s decision on Spanish tax scheme for indirect acquisitions of shareholdings in foreign companies, and (5) the Commission announces agreement with EIB Group on application of State...