For Vertical Agreements Exemption From Article 11 Of The Competition Act In The First Part Of A Specific Agreement To Ban

Original Language Title: Par vertikālo vienošanos atbrīvošanu no Konkurences likuma 11.panta pirmajā daļā noteiktā vienošanās aizlieguma

Read the untranslated law here: https://www.vestnesis.lv/ta/id/88035

 
Cabinet of Ministers Regulations No. 434 in Riga in 2004 (April 27. No 25, § 10) vertical agreements For the release of the article 11 of the Competition Act laid down in the first paragraph of the agreement bans issued in accordance with article 11 of the Competition Act, the fourth part 1. terms used in the rules: 1.1. active sales – asset activities, the purpose of which is to sell goods, such as through advertising or other measures offering buyers purchase items or create a warehouse or sales; 1.2. the exclusive distribution agreements-a vertical agreement, under which the seller directly or indirectly undertakes to sell the contract goods for resale only one particular area;  1.3. the exclusive sales (supply) agreement – a vertical agreement, under which the seller directly or indirectly undertakes to sell the contract goods to only one, which they use in the manufacture of the goods; 1.4. franchise contract – vertical agreements under which the franchisor for direct or indirect financial consideration, grants the other party the franchisee – the right to use the intellectual property rights (notably the firm, mark, sign, shop design object, know-how, know-how and patents) for use or sale of the goods; 1.5. dealer-buyer who purchases goods for resale; 1.6. the non-compete obligation – the meaning of these provisions, a vertical agreement, under which the buyer directly or indirectly undertake not to produce, not to buy or sell goods which compete with the contract goods, or directly or indirectly undertake to buy from the seller or from the seller indicated market participants to more than 80 percent of the total contract from the buyer of the goods or the purchase of goods competing with those in the volume of the market in the preceding calendar year; 1.7. passive sales – selling goods to individual customers, at their request, through measures aimed at creating demand for goods or increase of specific buyer groups or a specific area on the buyers; 1.8. selective distribution agreements-a vertical agreement, under which the seller directly or indirectly sell only to distributors selected by specific criteria, and where these distributors are obliged not to sell the contract goods to unauthorised distributors; 1.9. vertical agreements – agreements that are concluded between two or more players, each of which performs a different economic activities in the production or distribution of goods, and relating to the purchase or sale of goods.
2. provisions for certain market participants ' vertical agreements which are exempted from article 11 of the competition act the prohibition referred to in the first subparagraph, provided that the agreement meets all the requirements contained in these provisions, and certain market participants ' vertical agreements which are not required to inform the competition Council in accordance with article 11 of the Competition Act, the second and third part, if this activity does not significantly affect competition. 3. the exemption referred to in paragraph 2 shall also apply to the following types of vertical agreement if it meets all the requirements contained in these rules: non-compete obligations 3.1; 3.2. an exclusive sales agreement; 3.3. the exclusive distribution agreements; 3.4. selective distribution agreements; 3.5. the franchise agreement.
4. the exemption referred to in paragraph 2 shall apply to vertical agreements containing provisions relating to the transfer of intellectual property rights, or if these rules are not the primary purpose of the agreement and are directly related to the use or sale of the goods. 5. the exemption referred to in paragraph 2 shall apply to vertical agreements where the seller's market share on the relevant market on which it sells the contract goods, does not exceed 30 percent. This provision shall not apply to exclusive sales (supply) agreement. 6. the exemption referred to in paragraph 2 shall apply to exclusive sales (supply) agreement, if the buyer's market share on the relevant market on which it purchases the contract goods shall not exceed 30 percent.  7. the exemption referred to in paragraph 2 shall apply to vertical agreements entered into between competitors which, if the agreement does not provide for reciprocal purchases, both the participants ' combined market share on the relevant market does not exceed 20 percent and the seller is a manufacturer and a distributor of goods, while the buyer is a Distributor and not competing with the contract goods, the manufacturer of the goods. 8. the exemption referred to in paragraph 2 shall be limited to vertical agreements for the non-compete obligation, except for the agreement on: 8.1. direct or indirect non-compete obligation, the duration of which is indefinite or exceeds five years. Non-compete obligations that are automatically renewable after five years or more, considered a non-compete obligation for the indefinite period. The five-year time limit does not apply if the buyer sells the contract goods in real estate, which is owned by the seller or the seller renting from third parties not connected with the buyer, and the non-compete obligation shall not exceed the period within which the buyer is entitled to use this real estate; 8.2. direct or indirect obligation on the buyer after termination of the agreement, not to manufacture, purchase or sell merchandise, except where such an obligation relates to goods which compete with the contract goods, the purchaser and the continuation of the economic activities in real estate, where buyers take economic activity for the duration of the contract, and is necessary to protect the know-how that the seller, buyer and transferred the responsibility for a period not exceeding one year after the expiry of the contract; 8.3. direct or indirect members of a selective distribution system not to sell the duty of the seller of goods competing goods.
9. the exemption referred to in paragraph 2 shall not apply if the agreement, directly or indirectly, at least one of the following conditions: 9.1 the buyer's resale price controls, except the maximum resale price or recommending resale prices; 9.2. the restriction of the territory into which the buyer may sell the contract goods, or customer base, which restrict the buyer may sell the contract goods; 9.3. the members of a selective distribution system sales to consumers, who performed an economic activity at the retail level, with the exception of the following members of the sales limit of where to sell it is not authorized by the other members of the system; 9.4. mutual restriction of sales between Member of a selective distribution system, which have the same or different distribution levels; 9.5. the seller (who supply goods for the manufacture of the goods to the purchaser), the limitation to sell as spare parts or repair or other service providers which are not approved as a repair or other service providers for its goods. 
10. the derogation referred to in 9.2 shall not apply to the following limits: 10.1 active sales restrictions the buyer exclusive areas or to the exclusive customer group reserved to the seller himself or assigned to another buyer, where such a restriction does not apply to the sale by the buyer's customers; 10.2. limits relating to economic activity at the wholesale level was a sponsoring buyer, the sale of goods to consumers; 10.3. restrictions that apply to the selective distribution system of sales to unauthorised distributors; 10.4. the buyer's ability to sell the product limit, which the seller has sold the goods to the buyer, to customers who would use them for the same kind of production, which is produced by the seller.
11. the exemption referred to in point 8 the restrictions shall not apply to vertical agreements entered into between the players, with a market share on the relevant market does not exceed 10 percent.
12. the competition Board has the right to veto the vertical agreements that are in accordance with these rules are exempt from competition law article 11 agreements laid down in the first subparagraph, if the refusal does not match the effect of the competition law, article 11 of the conditions of the second subparagraph or parallel of similar vertical agreements (concluded between competing sellers or buyers) the network effect prevents, restricts or distorts competition within the relevant market, or similar vertical agreements cover more than 50 percent of a given market.
Prime Minister i. Emsis economic Minister, the Minister of finance Spurdziņš o.