EU rolls out evaluation of the Vertical Block Exemption Regulation for ecommerce

The evaluation has shown that the VBER and the Vertical Guidelines are still relevant, as they are useful tools that greatly facilitate the self-assessment of vertical agreements, and that help reduce compliance costs for businesses entering into such  agreements.

At the same time, the evaluation has shown that the market has changed significantly since the adoption of the VBER and the Vertical Guidelines, in particular due to the growth of online sales and of new market players such as online platforms. These developments have led to a number of changes in distribution models, such as increased direct sales by suppliers and a greater use of selective distribution systems, which allow suppliers a tighter control over resale conditions. Similarly, new types of vertical restrictions, such as restrictions regarding sales through online marketplaces and restrictions on online advertising, as well as retail parity clauses, have become more widespread.

The evaluation has also identified a number of issues with regard to the functioning of the rules, such as the fact that some provisions lack clarity, such as the rules defining agency agreements or that other provisions are difficult to apply or are no longer adapted to the current business environment, notably when it comes to applying the existing rules to new market players that do not fit into traditional supply and distribution concepts and to new online sales restrictions. Some gaps are identified in the rules, there remains significant scope for diverging interpretations of the rules by national competition authorities and national courts, among other stipulations.

During the next weeks, the Commission will launch an impact assessment to look into the issues identified during the evaluation with a view to having revised rules in place by 31 May 2022 when the current rules will expire.