You can also click here to take an interest in agency contracts. Type of distribution agreement – single /exclusive /non-exclusive/selective? 1 Anti-competitive agreements are agreements between companies that prevent, restrict or distort (or are intended for competition) and affect trade in the UK and/or the EU. There are different types of distribution agreements. Some more common examples are cited below: all distribution agreements are potentially contrary to EU competition law and UK competition law. Designated distributors should carefully consider the type of agreements they wish to enter into and possibly ensure that they are covered by an appropriate de minimis exemption or other specific exemption. Distribution agreements, especially those that are exclusive, often contain non-competition prohibitions. Such provisions may be permitted by vertical regulation, but there are also restrictions depending on the circumstances. A distribution agreement is an agreement between two parties, in which one party (the supplier) agrees to deliver products to the other (the distributor) that the distributor will market. It is very common for distribution rights to be granted in a given territory or market. Signing a distribution agreement can be exciting and fruitful, but we always recommend it.
B consider all options (for example, clauses you need or competitive risks) before locking yourself into such an agreement. Premium versions of distribution agreements also include an option ban for the distributor`s modification, dismantling or reversal of products. It is intended to be used in exclusive distribution operations when the distributor`s exclusive territory is located in the European Union. Companies involved in anti-competitive behaviour may consider their agreements to be unenforceable and may be accused of 10% of their global turnover due to particularly harmful behaviour and expose themselves to possible actions for damages by customers. In addition, persons linked to the transaction could face disqualification orders, or even criminal sanctions, for serious violation of competition law. The distributor is prohibited from delivering products in reserved areas (defined in the agreement: „all countries, territories and territories without territory, with regard to the countries, territories and territories for which the supplier may from time to time designate another exclusive distributor and the countries and territories that the supplier has reserved for itself“).