The European Commission has recently opened a public consultation on the Vertical Agreements Block Exemption Regulation (VABER), which expires on May 31, 2022. The VABER is a European Union (EU) regulation that allows companies to enter into vertical agreements without breaching EU competition law.
Vertical agreements are agreements between companies operating at different levels of the production or distribution chain, such as a manufacturer and a retailer. These agreements regulate the conditions of sale or purchase of goods or services, including pricing, distribution, and promotion.
The VABER provides a safe harbor for certain types of vertical agreements that do not have an appreciable impact on competition. The regulation provides legal certainty for companies that comply with the VABER guidelines, making it easier for them to enter into agreements with their business partners.
The European Commission`s public consultation aims to gather feedback on the VABER and assess its effectiveness in achieving its stated objectives. The consultation will also explore whether the VABER needs to be updated to reflect changes in the market and technology.
The consultation is open to all interested parties, including businesses, trade associations, consumer groups, and individuals. Interested parties are encouraged to submit their views and experiences with the VABER by September 17, 2021.
The European Commission will use the feedback received during the public consultation to evaluate the VABER`s effectiveness in promoting competition and consumer welfare. The Commission will also consider whether the VABER needs to be amended to better reflect the current market conditions and technological developments.
In conclusion, the public consultation on the VABER is an important opportunity for all interested parties to provide their views on the regulation and its effectiveness in promoting competition and consumer welfare. The European Commission`s review of the VABER will help ensure that the regulation continues to provide legal certainty for companies and promotes a level playing field for all businesses operating in the EU. Companies are encouraged to participate in the consultation process to ensure that their views are taken into account.