In many industries, vertical agreements are fundamental to the way companies distribute their products to consumers. They have also been the focus for vigorous economic debate on the extent to which they might, in principle, give rise to anti-competitive effects. It is therefore an area where per se rules would be inappropriate, and the case for detailed economic analysis has been gaining ground.

RBB economists have been involved in vertical cases considered under both Article 81 and Article 82 at the European level, as well as numerous national cases. We have analysed vertical restraints in sectors including new cars, beer, petrol retailing, chemicals, fine fragrances and luxury goods, toys and games and impulse ice cream. Our project experience includes:

	Economic analysis of restrictions
	Many vertical agreements contain meaningful restraints on commercial freedoms that do not amount to a restriction of competition in the sense intended by Article 81(1). We have wide experience of analysing the impact of restraints on competition.
	Applicability of the verticals restraints block exemption
	The EC vertical restraints block exemption provides a safe harbour for vertical restraints entered into by firms whose market share falls below the 30% threshold. We have wide experience advising on market definition and market shares in order to assess the applicability of the block exemption. We have also advised extensively on the various exceptions and grey areas surrounding the block exemption.
	Individual exemptions
	Even where the terms of general or sector-specific block exemptions do not apply in a particular case, the possibility of individual exemption under Article 81(3) remains. Moreover, the European Commission has published guidelines on Article 81(3) exemptions that require specific economic analysis. Our economists have worked with companies on a case-by-case basis to analyse the markets in which they operate, often focusing on the appropriate interpretation of relatively substantial market shares, and the precise effects of their distribution arrangements on competition, prices and consumer welfare.
	Design of sector-specific block exemptions
	Our expertise at developing an economic understanding of the role of particular arrangements in a specific industry context, and their impact on the competitive process, has allowed us to articulate the merits of granting particular sector-specific exemptions, and to advise on the appropriate format for any such exemption.
	Abuse of dominance
	The structure of dominant firms’ relationships with their distributors and suppliers has frequently been the subject of investigation by competition authorities concerned about the potential for foreclosure of competitors to entrench market power. We have worked with clients to develop objective economic analyses of the impact of particular vertical restraints, such as exclusivity arrangements, in order to evaluate properly allegations of abuse.