Competition Law And Commercial Agreements

Exclusive agreements may be assessed under Article 3(4) and Section 4 of the Act. Exclusive distribution agreements can also serve as an agreement providing for an exclusive means/channel for the sale/distribution of goods, for example.B. either offline or online. Under Community competition law, online sales are treated as passive sales and restrictions on such passive sales are considered essential restrictions. An enterprise is any natural or legal person in a position to carry out commercial or economic activities related to goods or services. Therefore, a business may include companies, partnerships, sole proprietors, partnerships without gain, public undertakings carrying out an economic activity and companies located outside the United Kingdom, if the agreement is implemented in the United Kingdom. Given the serious consequences of non-compliance, undertakings should regularly check whether the undertaking`s practices and agreements are compatible with competition law. For every company, and especially for every company that has a significant share of the markets in which it operates, it is essential to encourage employees to understand what kind of behaviour is and is not allowed by competition law. Exclusive clauses contained in commercial agreements such as purchase and delivery contracts, distributor contracts are common in the supply chain. Those factors are also taken into account by the ICC in the assessment of market power within the meaning of Article 3(4) of the Law. In its decision-making practice, the ICC took into account factors such as market share, market structure3, duration of the agreement4, barriers to entry5, etc., in determining market power for the assessment of agreements within the meaning of Article 3(4) of the Law. The classic definition of a dominant position in European case-law is an undertaking which is `in an economic strength of an undertaking which enables it to prevent the maintenance of effective competition on the relevant market by giving it the power to behave significantly, independently of its competitors and, ultimately, of consumers”.