Survey on Vertical Agreements in 2017 – Is the Rigid Application of Competition Law to Distribution Agreements Going to Kill the Buyer–Reseller Model?*

Abstract

Distribution agreements constitute one of the principal areas of application of competition law.1 As vertical agreements between businesses, they may be subject to the law on restrictive agreements where their object or effect is to restrict competition or the rules on abuse of dominant position – if the supplier is in such a position and its conduct is abusive.2 The competition authorities can even sanction the same conduct under both the law on restrictive agreements and abuse of dominant position.3 Exceptionally, a distribution agreement can also fall within the scope of merger control.4 In addition to those three basic precepts which are common to EU competition law and the laws of the Member States – referred to in France as ‘grand’ droit de la concurrence – exist a profusion of exclusively domestic competition law rules in the broader sense which apply to distribution agreements, specifically national laws pertaining to abuses of dependence and restrictive practices (‘petit’ droit de la concurrence).5