Distribution

EU competition law has a substantial impact on how companies doing business in Europe establish and operate their distribution systems.

Certain restrictions imposed on distributors may result in substantial fines being levied on suppliers, in particular restrictions on the freedom of distributors to engage in parallel trade or to resell products at as low prices as they choose. In establishing a distribution system in Europe, companies will require advice on the most appropriate form of distribution system for their business (for example, whether to opt for exclusive distribution, selective distribution or franchising) within the limits imposed by the EU competition rules. The onus of assessing a company’s compliance of its distribution systems and agreements with the EU competition rules rests squarely with the company itself. This self-assessment regime often involves complex legal and economic analysis of distribution arrangements in their market context, making specialist legal advice indispensable to any company contemplating establishing and operating a distribution network in Europe.

Van Bael & Bellis advises clients in a wide variety of sectors on the application of the EU competition rules – in particular the vertical agreements block exemption and accompanying guidelines – to their distribution and other vertical agreements, helping them to develop the optimal distribution structure for their particular business. The firm has defended clients in a number of major European Commission investigations related to parallel trade (grey market) issues. The firm has a particularly substantial practice in the automotive sector and is involved on a daily basis in counselling and defending clients in matters related to motor vehicle distribution. Van Bael & Bellis also has substantial expertise in the pharmaceutical sector, where the firm regularly advises clients on distribution and related intellectual property issues.