COMPETITION BOARD
Block Exemption Communiqué on éonVerticalAgreementsAmendedbytheCompetitionBoardCommuniquéVertical Agreements, Amended by the Competition Board Communiqués No. 2003/3 and 2007/2
Communiqué No: 2002/2
Purpose
Article 1- The purpose of this Communiqué is to determine the conditions for exempting in block vertical agreements, from the application of the provisions of article 4 of the Act on the Protection of Competition dated 7.12.1994 and numbered 4054.
Scope
Article 2- Provided that they bear the conditions mentioned in this Communiqué, agreements concluded between two or more undertakings operating at different levels of the production or distribution chain, with the aim of purchase, sale or resale of particular goods or services -vertical agreements- are exempted in block from the prohibition in article 4 of the Act, based on article 5 paragraph three of the Act.
(Amended: The Competition Board Communiqué No. 2007/2; RG- 25.05.2007, 26532) The exemption granted by this Communiqué shall apply in the event that the market share of the provider in the relevant market in which it provides the goods or services that are the subject of the vertical agreement does not exceed 40%. For those vertical agreements involving exclusive supply obligation, exemption applies on condition that the market share of the buyer in the relevant market in which it purchases the goods and services that are the subject of the vertical agreement does not exceed 40%.
Vertical agreements which involve provisions related to the transfer of intellectual rights to the purchaser, or their use by the purchaser, together with the regulations about the purchase, sale or resale of goods or services shall also benefit from the block exemption provided for in this Communiqué, on condition that the said intellectual rights directly concern the use, sale or resale, by the purchaser or the customers of the purchaser, of the goods or services which form the substantial subject of the agreement, and that the transfer or use of such intellectual rights does not constitute the main purpose of the agreement. However, with regard to the goods or services which are the subject of the agreement, this exemption shall be applicable provided that the provisions on the said rights do not involve limitations of competition the purposes or effects of which are the same with vertical limitations not exempted via this Communiqué.
Vertical agreements concluded between competing undertakings may not benefit from the exemption granted by this Communiqué. However, those vertical agreements where the provider is both the producer and distributor of the goods which are the subject of the agreement, and where the purchaser is not the producer but the distributor of the goods which compete with these goods shall benefit from the block exemption granted by this Communiqué.
This Communiqué shall not be applied to vertical agreements which fall under another block exemption communiqué.