CCPC adopts new verticals declaration
February 28, 2023
The Competition and Consumer Protection Commission (CCPC) has adopted a new Declaration in Respect of Vertical Agreements and Concerted Practices (Declaration) and a new Notice in Respect of Vertical Agreements and Concerted Practices (Notice). This follows a review process of the CCPC’s existing 2010 Declaration and Notice, including a public consultation on the proposed Declaration.
Vertical agreements are agreements between two or more undertakings, operating at different levels of the production or distribution chain, relating to the conditions under which the parties may purchase, sell or resell certain goods or services. The Competition Act 2002 as amended (the 2002 Act) permits the CCPC to declare in writing that a specified category of vertical agreements, decisions or concerted practices are not prohibited by Irish competition law. The aim of the Declaration and Notice is to provide useful guidance on vertical agreements for interested persons, and to ensure that undertakings can avail of the exemption provided for by the Declaration.
The European Commission’s Vertical Block Exemption Regulation (Commission Regulation (EU) 2022/720) (VBER) exempts from the prohibition in Article 101(1) of the Treaty on the Functioning of the European Union, vertical agreements between companies that are active at different levels of the production or distribution chain, subject to conditions.
The VBER was revised in June 2022. To ensure consistency between the regime applicable to vertical agreements at European Union level and at national level under the 2002, the CCPC reviewed the 2010 Declaration and Notice in light of the revised VBER and responses to its public consultation.
The CCPC’s Declaration provides for a similar exemption for certain vertical agreements from the prohibition contained in section 4 of the 2002 Act. The Notice provides informal and practical guidance on how undertakings can assess their vertical agreements so as to ensure that they can avail of the exemption provided for by the Declaration.
The Declaration will enter into force on 1 March 2023, and expire on 31 December 2034. The 2010 Declaration will expire on 1 March 2023. Transitional arrangements apply in respect of existing agreements and concerted practices which (a) comply with the 2010 Declaration and (b) were entered into prior to 1 March 2023.
More information on the new Declaration and Notice is available at Revision of CCPC Verticals Declaration.
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