Regulation on vertical agreements in general
Regulation on vertical agreements in motor vehicles sector
The new regulations exempting vertical agreements in general and vertical agreements in the motor vehicle sector took effect as from April 7 2011, replacing two regulations from 2004. Both regulations take into account the new rules introduced under the Competition Act - which entered into force in October 2010 - as well as the relevant competition rules at EU level.
Both the regulations have been published in the Official Gazette (37/2011) and their English translation should soon be available on the agency's official website.
Regulation on vertical agreements in general
As under the old rules, the new regulation allows undertakings whose market share is below 30% to benefit from a safe harbour under the competition rules, provided that their agreements contain no hardcore restrictions of competition. In line with the respective EU rules, the new rules also introduce the same 30% market share threshold for buyers.
For those that exceed the 30% market share threshold, vertical agreements will not be exempted, but neither will they automatically be presumed to be illegal. Unlike under the old rules, the individual exemption system has been abolished. Undertakings are now requested to carry out a self-assessment of their vertical agreements under the relevant competition rules.
Existing agreements will continue to benefit from the old regulation until the end of January 2012.
Regulation on vertical agreements in motor vehicles sector
As under the old rules, undertakings may benefit from the safe harbour under the new regulation provided that they do not exceed the 30% market share threshold. However, agreements must contain no hardcore restrictions of competition and must comply with other conditions laid down by the new rules.
The regulation introduces new rules on vertical agreements on the servicing of motor vehicles (ie, sale of spare parts for motor vehicles and repair and maintenance services). Similar to the new rules under the general framework, the individual exemption system in the car sector has also been revoked. The old regulation will continue to apply to the car sector until the end of May 2013. As of June 1 2013, distribution agreements for new motor vehicles will also be caught by the new general exemption framework.
The new regulation applies to the distribution of cars until the end of May 2013. From June 1 2013, the vehicle sales market will be treated like any other market.
For further information on this topic please contact Gabriele Wahl Cesarec at Petres & Cvirn by telephone (+385 1 4813 244), fax (+385 1 4813 073) or email ([email protected]).