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Online Sales within the Framework of Competition Law
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Att. Mehves Erdem
Introduction
Internet is a strong commercial platform, which suppliers, distrib-
utors and customers benefit. Undertakings who prefer online sales to
traditional sales can reach wide customer groups, increase sale oppor-
tunities and make savings in operational costs. Advantages undertak-
ings benefit from online sales allow them to lower recommended
prices, which create beneficial outcomes for customers. As a result,
customers start to use brick and mortar shops for informative and prac-
tical purposes such as product try-out and purchase the products via
Internet.
Differences between prices among undertakings create extensive
competition pressure, which leads to anti-competitive attempts such as
executing distribution agreements with limitations for online sales.
The European Commission’s Vertical Block Exemption Regulation
(“VBER”)
1
and European Union Vertical Restraints Guidelines
(“Guidelines”)
2
provide rules on the use and restrictions of internet in
terms of vertical distribution agreements. VBER does not regulate spe-
cific rules in terms of internet sales however the Guideline provides
reference to selective distribution systems which shows Commission’s
view on internet sales.
It is important to understand the distinction between active and
passive sales in terms of Internet sales within the context of distribu-
tion agreements. However it is sometimes difficult to make such dis-
COMPETITION LAW
121
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Article of February 2015
1
See:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32010R0330&from=
EN.
2
See:
http://ec.europa.eu/competition/antitrust/legislation/guidelines_vertical_en.pdf.