1. The EU competition rules on vertical agreements Selective Distribution
Senior Associate Iurii Gorda
The EU competition rules on vertical agreements Selective Distribution

2. Outline of the legislation
The Block exemption for vertical restrains (Ukraine)
The 2017 Block exemption
2) The Block exemption for vertical restraints (The EU, Art. 101 TFEU)
The 1999 Block exemption
The 2010 Block exemption
P. 3 Art. 256 of the EU-Ukraine Association Agreement, Ukraine shall approximate its competition
laws and enforcement practices on the application of Art. 101 (3) of the TFEU.

3. Selective Distribution
The supplier agrees to sell the contract goods/services (usually consumer goods) whether directly or indirectly only to distributors selected on the basis of certain specified criteria and where those distributors agree not to sell to unauthorised distributors (Vertical Guidelines, paras. 174 to 188).

4. The EU core court practice on selective distribution:
ECJ/Case Metro I.
ECJ/Case Pierrre Fabre.
ECJ/Case Coty (2017).

5. Case Metro 1 NO infringement if SDS:
the characteristics or nature of the product in question necessitate a SDS:
the distribution are chosen by reference to objective criteria of a qualitative nature which are set out uniformly and are not used arbitrarily to discriminate against certain retailers: and
the criteria set out do not go beyond what is necessary for the product in question.

6. Case Pierre Fabre Pierre Fabre produced cosmetics ≠ medicines.
Distribution contracts required that such sales must be made exclusively in a physical space in which a qualified pharmacist must be present.
Check SDS criteria of Metro 1 case.
SDS with such clause = a ban on the use of the internet for those sales (as method of marketing ) = amounts to a restriction by object within the meaning of that provision.
no objective justification.

7. Case Coty 2107
Check:
SDS criteria of Metro 1 case is okay for luxury goods
the quality of luxury goods = “aura of luxury”.
marketplace ban for the luxury goods is okay = control qualitative criteria of distributor.
limits online sales via discernible third party platforms ≠ absolute prohibition to sell online.
authorized distributors are free to sell via their own websites.

8. Promotion of ECJ practice on SDS in Ukraine
Antimonopoly Committee of Ukraine
Supreme Court
Lawyers

9. Thank you!