Global enforcement priorities in vertical agreements SEPTEMBER 2020 DLAPIPER.COM GLOBAL ENFORCEMENT PRIORITIES IN VERTICAL AGREEMENTS Contents Introduction .......................................................................................................................................................................................... 4 Global enforcement priorities – vertical restraints ....................................................................................................................... 5 Vertical agreements in major jurisdictions ..................................................................................................................................... 6 Argentina ............................................................................................................................................................................................... 7 Austria..................................................................................................................................................................................................... 9 Belgium ................................................................................................................................................................................................11 Brazil .....................................................................................................................................................................................................13 Canada..................................................................................................................................................................................................17 Chile ......................................................................................................................................................................................................20 China .....................................................................................................................................................................................................22 Colombia ..............................................................................................................................................................................................25 EU ..........................................................................................................................................................................................................28 Finland ..................................................................................................................................................................................................31 France ...................................................................................................................................................................................................33 Germany ..............................................................................................................................................................................................36 Hungary................................................................................................................................................................................................39 Israel .....................................................................................................................................................................................................41 Italy ........................................................................................................................................................................................................44 Japan .....................................................................................................................................................................................................47 Mexico ..................................................................................................................................................................................................49 The Netherlands .................................................................................................................................................................................56 2 DLAPIPER.COM Norway .................................................................................................................................................................................................59 Peru .......................................................................................................................................................................................................61 Poland ...................................................................................................................................................................................................63 Portugal ................................................................................................................................................................................................67 Romania ...............................................................................................................................................................................................70 Russia ....................................................................................................................................................................................................73 Slovakia .................................................................................................................................................................................................76 South Africa .........................................................................................................................................................................................79 Spain .....................................................................................................................................................................................................81 Sweden .................................................................................................................................................................................................83 Switzerland ..........................................................................................................................................................................................85 Ukraine .................................................................................................................................................................................................89 United Kingdom .................................................................................................................................................................................92 US ..........................................................................................................................................................................................................94 Key contacts ........................................................................................................................................................................................97 3 GLOBAL ENFORCEMENT PRIORITIES IN VERTICAL AGREEMENTS Introduction Vertical restraints refer to restrictions of competition well-integrated nationwide, resale price maintenance in agreements or contract terms between firms has long been the more or less most prominent per that operate at different levels of the supply chain, se restriction (but policy has relaxed in recent years). for example an agreement for the supply of goods In the European Union, competition law protects the between a manufacturer and a retailer or distributor, consumer not only by watching over supra-competitive or an agreement for the supply of services. The vertical pricing, but also through the creation of a Single Market agreement can relate to final goods bought for resale, without internal boundaries, in the hope that the price or for input products that the buyer processes into levels in different Member States may converge. This a final product for sale. Restrictions of competition translates into hostility as to territorial restrictions with in vertical agreements are generally considered less the EU/EEA, which are generally prohibited per se and harmful to competition than horizontal anticompetitive only allowed under fairly narrow circumstances. With the agreements between competitors such as cartels, rapidly advancing digitalization of the economy, novel market allocation schemes or legitimate forms of concerns have emerged such as the possibly “collusive” collaboration between otherwise competing companies. effect of price-adjusting algorithms, or the use of MFN clauses by different forms of online platforms. Vertical agreements are widespread, since few suppliers creating products or services sell directly to the end- In the 2005-2015 decade, enforcement interest was low, user. Most use wholesalers, distributors and retailers, at least in Europe. This has changed with the European and distribution systems may be two-tiered, three- Commission’s E-commerce Sector Inquiry (2015-2017), tiered or more, depending on the industry concerned. a massive information gathering exercise that laid Suppliers use different forms of distribution systems,