Since the EC Block Exemption Regulation (BER) went into force in June 2000,
companies are required to undertake a self-assessment of the possible
consequences of their vertical agreements that is, of agreements that arise in
a channel of distribution between firms at different levels of trade or
industry, i.e., between a manufacturer and wholesaler, between a supplier and
customer, or between a licensor of technology and his licensee. Such an
assessment can be extremely complex. Although the European Commission has
issued regulatory guidelines to facilitate the self-assessment process, there
can be little doubt that the in-depth analysis and guidance provided in this
book will be greatly welcomed by business people and their counsel.
Economic Analyses of Vertical Agreements clarifies the steps,
tests, determinations, and evaluations entailed in assessing vertical
agreements, especially when an individual examination under Article 81 EC
Treaty is required (as it is for all companies with more than a 30% market
share in a relevant market). Among the terms and factors thoroughly explained,
from the various pertinent points of view, are the following:
vertical restraints and their components;
exclusive and selective distribution agreements;
free rider rationale; and,
the European structured rule of reason in Article 81 EC Treaty
The presentation is particularly notable for its wide-ranging discussion of
types of vertical restraints and combinations of vertical restraints and how
each is impacted by the new vertical agreement rules. The author also
discusses the relevant case law of the EC Courts. Companies doing business in
Europe and their legal and economic advisers will find here an absorbingly
detailed overview of requirements and procedures, a clear analysis against
which to measure strategic choices, and an enormously useful handbook to
consult at every turn for expert guidance through the assessment of their
2. Vertical Restrains. 2.1. Definition
of Vertical Restraints. 2.2. Block Exemption Regulation. 2.3. Types of
Vertical Restraints. 3. Economics of Vertical Restrains. 3.1.
Different Schools of Thought. 3.2. Competitive effects of Vertical Restrains.
3.3. Policy Conclusions on Vertical Restrains.
4. Application of Article 81 to Vertical
Restrains. 4.1. General Principles of Article 81. 4.2. European
¿Structured¿ Rule of Reason. 4.3. Case Law of the EC Courts on Vertical
Restrains. 4.4. The Commission's Guidelines.
5. Self Assessment. 5.1. Market Definition. 5.2. Market
Share Calculation. 5.3. Applicability of Article 81 (1). 5.4. Applicability of
Article 81 (3).