Uk Vertical Agreements

If you`re looking for information on UK vertical agreements, you`ve come to the right place. Vertical agreements refer to deals between suppliers and their customers, such as manufacturers and retailers. These types of agreements can have a significant impact on competition and consumer choice, which is why they are subject to certain regulations in the UK.

The first thing to understand about vertical agreements is that they can take many different forms. Some common examples include exclusive dealing agreements, where a supplier agrees to sell its products exclusively to a particular retailer; resale price maintenance agreements, where a supplier sets a minimum price at which its products must be sold by retailers; and non-compete agreements, where a retailer agrees not to sell competing products.

While vertical agreements can have benefits for both suppliers and customers, they can also create a number of competition concerns. For example, exclusive dealing agreements can limit competition by preventing other retailers from selling a particular product. Similarly, resale price maintenance agreements can result in higher prices for consumers.

To address these concerns, the UK has adopted a number of regulations governing vertical agreements. One key piece of legislation is the Competition Act 1998, which prohibits agreements that have the effect of restricting competition in the UK. This includes agreements between suppliers and customers.

In addition to the Competition Act, the UK also follows the EU`s Vertical Agreements Block Exemption Regulation (VABER). This regulation provides a safe harbour for certain types of vertical agreements that meet certain criteria, such as agreements that do not contain hardcore restrictions on competition.

Overall, if you`re involved in a vertical agreement in the UK, it`s important to understand the rules governing these agreements. By doing so, you can ensure that your agreements comply with UK competition law and avoid any potential legal issues.