ABSTRACT
The Regulation can extend to selective distribution systems whereas, previously, there had been no Block Exemption Regulation. Accordingly, selective distribution, even where it falls within Art 81(1) because of quantitative restrictions, can benefit from block exemption. However, there are two hard core restrictions which are specifically targeted at selective distribution networks. The key provision is Art 4(c) which excludes from the Regulation any agreements which restrict the active or passive sale to end users by members of a selective distribution network.77 Otherwise, Regulation 2790 ensures that both qualitative and quantitative selective distribution networks will be exempted up to the 30% market share, subject to the possibility of withdrawal. Withdrawal of the benefit of block exemption is most likely where there are a number of selective distribution networks in the market, as the cumulative effect may be, in effect, to foreclose that market.
