EC Working Paper on Dual Roles in Distribution

Latham & Watkins LLP

The European Commission (“EC”) has published a Working Paper on dealing with distributors that also act as agents for certain products for the same supplier. The Working Paper is an attempt by the EC to clarify the current rules regarding agency agreements in the context of the ongoing review of the competition rules on vertical restraints.

Key Points:

..Under EU competition law, the distributor of certain goods of a supplier may also be an agent of that same supplier for the distribution of other goods.

..The difference between agent and distributor is not without consequence. In agency relationships the supplier is the seller vis-à-vis customers and may fix the prices of its products sold by its agent as well as restrict where and to whom its products are sold.

..Determining when a distributor also acts as an agent for the same supplier is a complex exercise. A strict delineation of responsibilities is necessary.

..The Working Paper seeks to clarify which costs should be covered or reimbursed by the principal and puts forward methods for financing such costs. The Working Paper also gives an example illustrating how the principles it describes can be applied practically.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Written by:

Latham & Watkins LLP

Latham & Watkins LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.