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Legal Terms - export bans
*Anticompetitive practices that prohibit the resale of products from one EU/EEA territory to another. It has been long established that export bans violate the competition regulations outlined in Article 101 of the Treaty on the Functioning of the European Union. The European Commission has the authority to impose penalties of up to 10% of the annual worldwide group turnover. Clauses in contracts that prohibit exports are examples of practices that violate the rules. When Article 101 is applicable, an export prohibition in a written contract will be rendered null and void. Nevertheless, it is permissible to prohibit an exclusive distributor from actively soliciting sales in another EU/EEA territory when the vertical agreements regulation 330/2010 is in effect. It is not permissible to prevent a distributor from advertising on a website, as this is considered "passive" rather than "active" selling. Furthermore, the EU/EEA prohibits practices that have the potential to strengthen or impose an export ban. These practices include the acquisition of all parallel imports, the marking of products solely for the purpose of tracing them in order to prevent parallel importation, and the sending of emails to, or otherwise pressuring, dealers to refrain from engaging in parallel importation.
*Anticompetitive practices that prohibit the resale of products from one EU/EEA territory to another. It has been long established that export bans violate the competition regulations outlined in Article 101 of the Treaty on the Functioning of the European Union. The European Commission has the authority to impose penalties of up to 10% of the annual worldwide group turnover. Clauses in contracts that prohibit exports are examples of practices that violate the rules. When Article 101 is applicable, an export prohibition in a written contract will be rendered null and void. Nevertheless, it is permissible to prohibit an exclusive distributor from actively soliciting sales in another EU/EEA territory when the vertical agreements regulation 330/2010 is in effect. It is not permissible to prevent a distributor from advertising on a website, as this is considered "passive" rather than "active" selling. Furthermore, the EU/EEA prohibits practices that have the potential to strengthen or impose an export ban. These practices include the acquisition of all parallel imports, the marking of products solely for the purpose of tracing them in order to prevent parallel importation, and the sending of emails to, or otherwise pressuring, dealers to refrain from engaging in parallel importation.
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