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Vertical Agreements Block Exemption Regulation 2010

According to Turkish competition law, the release of the category exemption for vertical agreements no Regulation (EC) No 2002/22 (“Turkish VBER”) sets out the conditions for the exemption of vertical agreements as a block from the application of Article 4 of the Competition Act, which provides that “concerted agreements and practices between companies and the decisions and practices of business associations aimed at or likely to prevent or restrict competition in a given market for goods or services are illegal and prohibited.” At present, the latest 2009 guidelines of the Turkish Competition Authority (TCA) on vertical agreements (“Turkish guidelines”), which have been strongly influenced by the Commission`s communication on the guidelines for vertical restrictions (2000/C291/01), are in force. However, the low adoption rate of the Commission`s previous guidelines gives hope that the Commission`s new guidelines will be adopted in the near future. 3. The exemption in paragraph 1 applies to vertical agreements that contain provisions relating to the transfer of intellectual property rights to the purchaser or the purchaser`s use of intellectual property rights, provided that these provisions are not the main purpose of these agreements and are directly related to the use, sale or resale of goods or services by the purchaser or his or her customers. The exemption applies provided that these provisions do not contain, for contractual goods or services, competition restrictions with the same purpose as vertical restrictions that are not exempt under this Regulation. Beyond the 30% market share threshold, vertical agreements within the scope of Article 101, paragraph 1 of the Treaty, cannot generally result in objective advantages in this sense and in their size, in order to compensate for the disadvantages they cause for competition. At the same time, there is no presumption that these vertical agreements are either covered by Article 101, paragraph 1 of the Treaty or do not meet the conditions of Article 101, paragraph 3 of the Treaty. 2. When a company purchases, in a multi-party agreement, the contractual goods or services of a company that is a party to the agreement and sells the contract goods or services to another company party to the agreement, the market share of the first company must meet the market share threshold set out in this paragraph, both as a buyer and as a supplier, in order to apply the article 2 exemption. The CCPC may amend this statement from time to time. For example, the CCPC may exclude a certain category of goods or services if it believes that competition is significantly constrained by a broad network of vertical restrictions in a particular market.

The Authority has also issued an opinion on vertical agreements and concerted practices to provide guidance to interested parties to assess their vertical agreements to ensure that they can benefit from the exemption provided in the declaration. The category of agreements that can normally be considered the terms of Article 101, paragraph 3 of the treaty includes vertical agreements for the purchase or sale of goods or services where these agreements are concluded between non-competing companies, between specific competitors or specific associations of commodity traders. It also includes vertical agreements that contain subsidiary provisions relating to the transfer or use of intellectual property rights. The term “vertical agreements” should include corresponding concerted practices. The Competition Act 2002 allows the Competition and Consumer Protection Commission (CCPC) to state in writing that a certain category of vertical agreements, decisions or concerted practices is not prohibited by Irish competition law. The purpose of this declaration is to provide interested parties with useful guidance on vertical agreements and to ensure that businesses can benefit from the exemption provided in the declaration.

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