A critical analysis of vertical agreements under EU competition law in the light of the new Commission Regulation (EU) 2022/720

Abstract

Rivalry between market operators remains fundamental to protect the natural process of competition in a free market economy. Article 101(1) TFEU prohibits those vertical and horizontal agreements between undertakings which inhibit competition. Commission Regulation 2022/720 (hereinafter referred to as the “Vertical Block Exemption Regulation” or “VBER”) exempts certain types of vertical agreements from the prohibition of Article 101(1) TFEU. This latest version of the regulation came into force on 1 June 2022 to provide undertakings ‘with up-to-date guidance that is fit for an even more digitalized decade ahead’. Businesses have a much clearer picture and thus more certainty on what type of vertical agreements are permitted in competition law. An overview of the essential concepts in competition law is first provided with the aim of establishing the key ingredients for a subsequent discussion surrounding the legal and economic implications of vertical agreements and vertical restraints. In the third chapter, a thorough analysis is provided of the relevant provisions of the VBER, which allows the reader to understand how vertical agreements are considered under this regulation. This dissertation also examines the differences in the regulation of such agreements between the previous VBER enacted in 2010 (Commission Regulation 330/2010 – hereinafter referred to as “previous VBER”) and the current, revised version. The fourth chapter pinpoints certain concerns raised by technological developments and considers the future of vertical agreements in the context of the ever-increasing digital economy. The dissertation concludes with a synthesis of the key takeaways as well as potential proposals for reform.