Ec Competition Law Presentation

Cleveland OhioCleveland Ohio April 22, 2009 April 22, 2009

Doing Business in the European Union

Focus on Focus on EC Competition law:EC Competition law:Restrictions of Trade Restrictions of Trade

and and Block Exemption RegulationsBlock Exemption Regulations

DisclaimerDisclaimer

The information provided is believed to The information provided is believed to be accurate as of the date of the be accurate as of the date of the presentation, but is subject to change presentation, but is subject to change without notice.without notice.

This presentation is designed for This presentation is designed for informational purposes only and is not informational purposes only and is not intended to be, nor should it be deemed, intended to be, nor should it be deemed, specific legal advice. If such advice is specific legal advice. If such advice is required, please consult with legal required, please consult with legal counsel.counsel.

GoalsGoals

How to determine whether an How to determine whether an agreement or a behavior is agreement or a behavior is prohibited?prohibited?

Overview of the Block exemption Overview of the Block exemption regulationsregulations

Evaluating your efficiencies to Evaluating your efficiencies to benefit the legal exemptionbenefit the legal exemption

I. Scope of Art. 81I. Scope of Art. 81 TECTEC

1.1. Why does it apply to US companies?Why does it apply to US companies?

2.2. How does Art. 81 work?How does Art. 81 work?

Focuses on agreements, decisions of Focuses on agreements, decisions of associations and concerted practicesassociations and concerted practices

Criteria used: the Criteria used: the agreements/behaviors have “agreements/behaviors have “as their as their object or effect the prevention, object or effect the prevention, restriction or distortion of competition restriction or distortion of competition within the common marketwithin the common market””

3. Main categories of prohibited agreements

Restriction on prices

Market entry restrictions

Restrictions on the freedom of sale

Cooperation agreements having restrictive object/effects

IP rights restrictions

4. Grey area examples

Unilateral measures vs. agreement formed by tacit acceptation of commercial partners

Legitimate parallel behaviors vs. concerted practices

Holding a share in a company vs. influencing in an anti-competitive way the company’s commercial behavior

II. II. Overview of the Block Overview of the Block Exemption RegulationsExemption Regulations1. Supply & Distribution 1. Supply & Distribution

AgreementsAgreements Why is there an exemption for that Why is there an exemption for that

kind of agreements?kind of agreements? What are the agreements covered by What are the agreements covered by

the exemption?the exemption? What are the clauses in the What are the clauses in the

agreement that could take the agreement that could take the exemption away, and thus subject the exemption away, and thus subject the agreement to being voided?agreement to being voided?

2. Technology Transfer Exemption2. Technology Transfer Exemption

Why is there such an exemption?Why is there such an exemption?

What agreements does the What agreements does the exemption cover?exemption cover?

What are the conditions that must be What are the conditions that must be met in order to be exempted?met in order to be exempted?

III. Evaluating your efficiencies III. Evaluating your efficiencies under Art. 81.3under Art. 81.3

Must be done when the agreement Must be done when the agreement falls under 81.1, but does not benefit falls under 81.1, but does not benefit from the block exemption from the block exemption regulations.regulations.

How? Auto-exemption if the How? Auto-exemption if the agreement/behavior meets 4 agreement/behavior meets 4 conditionsconditions

(i)(i) Efficiency gains Efficiency gains: improving the : improving the production or distribution of goods or production or distribution of goods or promoting technical or economic promoting technical or economic progress, andprogress, and

(ii) (ii) indispensable restrictionsindispensable restrictions, and, and

(iii) Sharing the (iii) Sharing the benefitsbenefits with the with the consumersconsumers, and, and

(iv) Upholding(iv) Upholding competition competition

Thank you!

Yormick & Associates Co. LPA

Jordane-Christine Fura

Associate and Juriste en Droit Européen

Fitfh Third Center

600 Superior Avenue E. , Suite 1300

Cleveland, Ohio 44114

Tel: 216-928-3474