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Selective Distribution Systems within the scope of Communiqué

No. 2002/2

As it is regulated in Art. 4 of Communiqué No. 2002/2, vertical

agreements that include limitations and have the intent to hinder com-

petition, directly or indirectly, may not benefit from the exemption.

Those that are regulated under Art. 4, and which may not benefit from

the block exemption, are related to selective distribution agreements.

These are as follows: (i) restriction of active or passive sales to end

users, to be performed by the system members operating at the retail

level, provided that the right is reserved for prohibiting a system mem-

ber from operating in a place where it is not authorized, (ii) prevention

of purchase and sale between the system members themselves in the

selective distribution system.

In light of the foregoing, even if the supplier creates exclusive

regions in order to supply goods to a limited number of purchasers,

active and passive sales to be performed by purchasers to the end users

outside of the region cannot be prevented. Additionally, enterprises that

adopt a selective distribution system cannot impose exclusive purchase

obligations to the system member buyers. In other words, the system

members cannot be prevented from purchasing products from other

member undertakings.

Accordingly, selective distribution agreements that do not include

restrictions listed under Art. 4 of Communiqué No. 2002/2 benefit

from the block exemption, without considering the quality of the goods

and services and the selection criteria.

Selective Distribution Systems within the scope of Communiqué

No. 2005/4

Pursuant to Art. 3/f of Communiqué No. 2005/4, a selective distri-

bution system means a distribution system where the provider under-

takes to sell the goods or services that are the subject of the agreement

only to the distributors or authorized services, directly or indirectly,

and where these distributors or authorized services undertaking not

to sell the said goods and services to unauthorized distributors and

services.

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NEWSLETTER 2015