Exclusive Distribution: An Overview of EU and National Case Law
Competition authorities and courts around the globe generally take the view that vertical restraints are typically less harmful to competition than horizontal agreements, and may provide substantial scope for efficiencies.
This does not mean that vertical agreements are always positive for consumers and for the marketplace. Usually, competition concerns may arise in case there is insufficient competition at one or more levels of trade; in other words, if there is some degree of market power at the level of the supplier or the buyer, or at both levels. In this context, many legal experts and economists are generally cautious in their assessment of vertical restrictions, and are unwilling to regard them as per se beneficial for competition.