| Author (Person) | Tait, Nikki |
|---|---|
| Series Title | Financial Times |
| Series Details | 20.4.10 |
| Publication Date | 20/04/2010 |
| Content Type | News |
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The European Commission adopted a Regulation on the 20 April 2010 block exempting agreements between manufacturers and distributors for the sale of products and services. The Regulation and accompanying Guidelines take into account the development, in the last 10 years, of the Internet as a force for online sales and for cross-border commerce, something that the Commission wants to promote as it increases consumer choice and price competition. The basic principle remains that companies are free to decide how their products are distributed, provided their agreements do not contain price-fixing or other hardcore restrictions, and both manufacturer and distributor do not have more than a 30% market share. Approved distributors are free to sell on the Internet without limitation on quantities, customers' location and restrictions on prices. The FT article reports that European consumer groups were warning that the new EU rules allowing manufacturers to choose how their goods are distributed and sold could jeopardise the growth of e-commerce and online-retailing. |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
