Rules For Certain Vertical Agreements Not Exposure To Competition Law Article 11, First Paragraph, The Prohibition Laid Down In The Agreement

Original Language Title: Noteikumi par atsevišķu vertikālo vienošanos nepakļaušanu Konkurences likuma 11.panta pirmajā daļā noteiktajam vienošanās aizliegumam

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Cabinet of Ministers Regulations No. 797 in Riga, 29 September 2008 (pr. 69.7, §) rules for certain vertical agreements not exposure to competition law article 11, first paragraph, the prohibition laid down in the agreement Issued in accordance with article 11 of the Competition Act, the fourth part 1. determines: 1.1. separate market participants ' vertical agreements that do not significantly affect competition;
1.2. the criteria under which individual operators ' vertical agreements are not subject to the competition law article 11, first paragraph, the prohibition laid down in an agreement (hereinafter called the agreement a ban). 2. the terms used in the rules: 2.1. vertical agreement-agreement concluded by two or more players, each of which carries out an economic activity in a different level of the production or distribution, and relating to the agreement for the purchase or sale of the goods;
2.2. the agreed goods – goods or services which are the subject of a vertical one fucking;
2.3. exclusive supply (distribution) agreement – a vertical agreement, under which the supplier directly or indirectly agrees to sell the goods in the agreement to only one particular area of a specific use or for resale;
2.4. selective distribution agreements-a vertical agreement, under which the supplier directly or indirectly agrees to sell goods to the arrangement only after certain criteria to selected distributors and these distributors undertake not to sell the goods in the agreement to unauthorised distributors;
2.5. 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 agreed goods or directly or indirectly undertake to purchase from the supplier or someone designated by players more than 80 percent of the total agreement with those of competing goods, or goods purchases in the market in the preceding calendar year;
2.6.-intellectual property rights within the meaning of these regulations, industrial property rights, copyright and related rights;
2.7. the supplier-meaning of these provisions, a producer or other market participant, who sells the goods to the buyer of the arrangement;
2.8. the buyer-market participants who purchased goods of a specific use or for resale;
2.9. the goods purchased for a specific use, the meaning of those provisions, the goods that the purchaser buys from the supplier, to use its own production of goods, including goods that are selling and buying for rental to third parties;
2.10. the active sales – goods retailer of active operation the purpose of which is to sell goods to customers in another distributor's exclusive territory or exclusive customer group, for example, by using direct mail or visits, installing outlets or through other measures;
2.11. passive sales – selling goods to individual customers upon request (including the supply of goods following the customers), not through measures that aim to create or increase demand for goods exclusive customer group or customers in the exclusive territory;
2.12. final consumer, within the meaning of this provision: the natural or legal person purchasing goods in the agreement for its own use and not for resale;
2.13. agreement on mutual distribution – the meaning of these provisions – agreement between competitors, including manufacturers and service providers, in accordance with the agreement between the participants undertake to distribute the other participants produced or delivered goods. 3. Vertical agreement is not subject to the ban, the agreement provided that each participants's market share on the relevant market does not exceed 10 percent and does not contain this provision referred to in paragraph 8. restrictions of competition. 4. Vertical agreement is not subject to the ban, the agreement if the supplier's market share on the relevant market on which it sells the goods in the agreement does not exceed 30 percent. This condition does not apply to exclusive supply (distribution). 5. If the vertical agreement provides for exclusive supply (distribution), it is not subject to the ban of the arrangement on condition that the market share of the buyer on the relevant market on which it purchases the goods in the agreement does not exceed 30 percent. 6. If the provisions of paragraph 3 and 4 of that market share, at the time of conclusion of the agreement reached 30 percent, but after the conclusion of the agreement will increase, up to 35 percent, following a vertical agreement is not subject to the agreement of prohibition two subsequent calendar years following the year in which the market share for the first time exceeded 30 percent. 7. where these rules 3 and 4, the market share referred to in the conclusion of the agreement at the moment does not reach 30 percent, but after the conclusion of the agreement, up to a 35 percent increase, following a vertical agreement is not subject to the agreement of prohibition of one calendar year following the year in which the market share for the first time exceeded 30 percent. 8. Vertical agreement is subject to the ban, the agreement if the agreement target, directly or indirectly, in isolation or in combination with other conditions that may affect the participants in the arrangement are: 8.1. the restriction of the buyer's ability to determine its sale price. The supplier is entitled to set a maximum or recommended price of sale provided that the participants in the arrangement the following hidden form with your actual action does not amount to a fixed or minimum sale price;
8.2. to limit the range of customers or the territory in which the buyer is entitled to sell the goods, except for the agreement: 8.2.1. ban on active selling of exclusive territories or exclusive customer group reserved to the supplier by himself or another buyer has given, if such exclusion shall not apply to the sale by the buyer's customers;
8.2.2. the prohibition of the buyer, who works at the wholesale level, to sell the goods in the agreement to the final consumer;
8.2.3. the prohibition of the selective distribution network to sell the goods in the agreement to unauthorised distributors;
8.2.4. a prohibition on the sale of its components that are delivered to the final product to support customers who they can use the same type of goods production, which produced by the supplier;

8.3. the prohibition of the selective distribution network, which carried out the thighs of activities saimn at the retail level, to take active or passive sales to end users, unless such operations are not carried out from unauthorized outlets;
8.4. the prohibition of the selective distribution network (as well as carrying out economic activities at various levels of trade) to make a mutual supply;
8.5. the prohibition of the supplier to sell the components as spare parts to end-users and the repair and maintenance services of other providers, which are components used in this final product is not authorized for 2004, repairing or servicing their goods. 9. Vertical agreements are not subject to the ban if the agreement provides for the transfer of intellectual property rights to the buyer, if this is not the basic purpose of the arrangement and transfer of intellectual property rights is directly related to the use or sale of the goods. Such vertical agreements are not subject to the agreement of prohibition, provided that the conditions of intellectual property rights in relation to the agreed goods do not contain restrictions of competition with a similar purpose or effect as vertical agreements which are subject to the agreement of prohibition. 10. Vertical agreements between associations of market participants and its members, or between the associations of market participants and its suppliers shall not be subject to the prohibition of agreements, if all its members are retailers and not one of the players the members of the association with the affiliates market share on the relevant market or the relevant purchase market does not exceed 10 percent. 11. Vertical agreements concluded between competitors which are not subject to the ban, the agreement provides for reciprocal distribution if they do not, and at least one of the following conditions: 11.1. the buyer's market share on the relevant market does not exceed 10 per cent;
11.2. the supplier is a manufacturer and a distributor of goods, while the buyer is a distributor not agreed the goods of competing product manufacturer;
11.3. the supplier is a provider of services at several levels of trade, while the buyer does not provide competing services at the level of trade where the buyer purchases a service agreement. 12. Vertical agreements are subject to the ban, the agreement if the agreement contains at least one of the following conditions: 12.1. direct or indirect non-compete obligation, the duration of which is indefinite or exceeds five years. After five or more years automatically renewable non-compete obligation is regarded as a non-competition obligation catches for an indefinite period of time. Non-compete obligations, limited in time, žojum does not apply to the following cases: 12.1.1. If the buyer sells goods to the arrangement of the premises or land owned by the supplier or leased by the supplier from third parties not connected with the buyer. In this case, the non-compete obligation does not exceed the period within which the buyer uses these premises or land;
12.1.2. franchise agreements in the framework of the non-compete obligation is objectively necessary in order to maintain the overall brand identity and reputation of the franchised network;
12.2. the direct or indirect prohibition of termination of the agreement to the buyer to produce, buy or sell goods, except where such prohibition: 12.2.1. refers to the production of goods, the purchase or sale of which competes with agreed goods;
12.2.2. confined to the premises or land where the buyer for the duration of the contract was carried out economic activities, if the buyer even after termination of the agreement continue to use these premises or land;
12.2.3. it is necessary to protect the know-how transferred by the supplier to which the buyer;
12.2.4. within the period of one year from the expiry of the agreement, unless the participants in the arrangement of the prohibition established for an indeterminate period of time regarding the use and disclosure of know-how to third parties that is not publicly used or disclosed in any other way;
12.3. direct or indirect prohibition of the selective distribution network to sell branded from competing suppliers. 13. For vertical agreements, which are not subject to the agreement of the mam, ban the competition Council need not be informed. 14. the competition Board has the right to ban if the vertical agreement concluded, if the effect is not in conformity with article 11 of the competition act in the second part of the above, or parallel to a 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 Godmanis economic Minister i. k. Gerhard

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