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. The rail company BAM Nuttall and BAM Construct UK have signed the agreement with Polypipe Civils – Green Urbanisation and Polypipe Building Products in a single step that marks closer cooperation between the two COMPANIEs BAM UK, which are expected to be the first in a series of such agreements. BAM believes that carefully oriented agreements will provide its customers with a competitive advantage and bring benefits both in terms of quality and performance. Whether a distribution agreement effectively restricts competition and whether, in this case, cartels predominate often depends on the structure of the market. This in principle requires an individual assessment in each case. However, under EU competition rules, most distribution agreements are granted by a waiver for vertical agreements (often referred to as “vertical class exemption”) which creates a general presumption of the legality of vertical agreements, provided that the market share held by the supplier is less than 30% and that the agreements do not contain specific specific restrictions. There are different types of distribution agreements. Here are some more common examples: an agreement in which a retailer buys all its shares from a single supplier, “The defendants convinced buyers to enter into a Solus agreement with ESSO.” A distribution agreement is a legal agreement between a supplier of goods and a distributor of goods. The supplier may be a manufacturer or a distributor who resells the goods of another. Distribution agreements can be due to both UK competition law and EU competition law, so caution should be exercised when developing them. This briefing note summarizes some of the key considerations to consider when developing a distribution agreement. You can also click here to take an interest in agency contracts.
Solus agreements, such as those signed with Polypipe, are expected to generate economies of scale and a number of benefits that will reduce the cost of capital for customers and create sustainable added value. 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. A vertical agreement between companies operating at different levels of the economic supply chain includes, for example, agency and franchising agreements and distribution agreements.