Competition Enforcement in the Recently Acceded Member States Vertical Agreements Michal Petr Office for the Protection of Competition, Czech Republic

Overview New Vertical Restraints BER Czech experience with RPM What about the on - line sales?

I. New Vertical Restraints BER Commission Regulation 2790/1999 in force till 31 May 2010 Draft „new“ Regulation and Guidelines, public consultation from 27 July 2009 Finally adopted on Tuesday In force from 1 June year transitional period „even more“ effects-based

ad New BER same scope non-reciprocal vertical agreements of competitors – dual distribution (not buyer's turnover) presumption of positive effects based on market share 30 % by each of the undertakings on all relevant markets same as e.g. de minimis presumption of negative effects of „hardcore restrictions“ (101/1 TFEU) possibility to claim efficiencies (101/3 TFEU) identical extent of „hardcore“

2. The (in)famous RPM still hardcore under the new BER possible efficiencies (especially if supplier driven) „campaign“ of the Office since 2007 widely endorsed by distributors no efficiency claims (at all) the Tupperware judgement: „quasi per se“ approach of the court ( RPM not necessary for any efficiencies; cannot bring benefits to consumers)

3. Internet active and passive sales distributors free to sell on-line suppliers may require on distributors quality standards to have a brick and mortar shop

ad Internet Hardcore restrictions of passive sales e.g. Prevent customers from other territories to access websites; rerouting Limit the proportion of on line sales (but absolute amount of off-line sales possible) Higher prices paid by the distributor for products intended to be sold on-line

ad Internet Active sales e.g. Territory based banners Paying a search engine or online advertisment provider to have advertisement specifically displayed

„The rules adopted today will ensure that consumers can buy goods and services at the best available prices wherever they are located in the EU while leaving companies without market power essentially free to organise their sales network as they see best.“ (Joacquin Almunia, 20 April 2010)

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