E. C. competition law relating to the main methods of commercial distribution

Abstract

The scope of this thesis is to contribute towards the understanding of current EC Competition Law regarding the main methods of commercial distribution in the light of the Block Exemption Regulation 2790/99 and other Community instruments that have affected the system to date. A characteristic of distribution agreements is the passing of title. However not all of the above mentioned agreements involve the passing of title from the producer to the distributor. Chapter 1 deals with agreements between suppliers and agents which in theory do not involve agreements between independent undertakings since the agent constitutes an integral part and is counted as one with the undertaking that uses its services. Chapter 2 discusses agreements between suppliers and independent distributors, the function of which is to grant the latter the role of promoting, marketing and distributing, the particular goods or services within a particular territory. This distributor may in tum enter into a myriad number of exclusive distribution agreements with various other retailers in the different regions of that same territory. Exclusivity, territorial protection, resale price maintenance and other means are features commonly inserted in such agreements. Each such practice is addressed in Chapter 3 the focus of which is an appraisal of the Block Exemption Regulation. The quality and the ambience of the premises, the expertise or knowledge of the retailers, the equipment and services at the point of sale, amongst other things could have an astounding effect on sales. This is the primary justification behind those suppliers that insist not only on carefully selecting their distributors but also on permitting each of the latter to sell only to final buyers or other selected retailers. Selective distribution is taken up in Chapter 4. Chapter 5 deals with Franchising and the licensing of trademarks or trade names and the transferring of confidential marketing know-how. Central to this method is the idea of having a good measure of uniformity of goods, services and ambience at diverse points of sale. This in tum would normally attract tighter controls which ensure the consistency in marketing practices and generality in overall performance. The thesis aims at achieving an exposition of the Community's approach towards the select methods of commercial distribution.