Competitive effects of most-favoured nation clauses [Archived]

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Practice notes

Competitive effects of most-favoured nation clauses [Archived]

Produced in partnership with Dentons

Practice notes
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ARCHIVED: This Practice Note has been archived and is not maintained. The UK has introduced The Competition Act 1998 (Vertical agreements Block exemption) Order 2022 (VABEO). The UK’s VABEO replaced the Vertical Restraints Block Exemption Regulation 330/2010 (VBER 2010) in the UK on 1 June 2022. The European Commission has introduced the Vertical Block Exemption Regulation 2022/720 (VBER 2022). The VBER 2022 replaced the VBER 2010 in the EU on 1 June 2022. The UK’s VABEO and EU’s VBER 2022 (and their accompanying 2022 guidance/guidelines) make significant changes to the treatment of most-favoured nation (MFN) clauses. This Practice Note was written prior to the introduction of the UK’s VABEO and EU’s VBER 2022 and examines MFN’s treatment by the European Commission and national competition authorities prior to the UK’s VABEO and EU’s VBER 2022.

For an assessment of MFNs in the EU under Article 101 TFEU, the VBER 2022 and the Commission’s 2022 Guidelines on Vertical Restraints, please see the relevant sections within Introduction to the application of Article 101 TFEU to vertical agreements, The Vertical

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Jurisdiction(s):
United Kingdom
Key definition:
Block exemption definition
What does Block exemption mean?

eu regulation or UK Order that exempts a category of agreements, often according to their sector (e.g. Motor vehicle distribution agreements) from the prohibitions in article 101(1) TFEU and section 2 of the Competition Act 1998

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