On 16 March 2020, the French Competition Authority («FCA») announced that it had fined Apple 1.1 billion euros, the highest ever imposed on a company for entering into vertical agreements with some of its distributors and for economic dependence on its independents (…) There are many factors that a distribution contract can include, but at least they must indicate the duration of the contract, the details of the product delivery and the distribution areas covered by the agreement. The indication of all the details relating to the supply of the product is particularly important and this information must be discussed in depth in the contract or in an appendix. This section should include contracting, payment, delivery, returns, inspection requirements, risk transfer, transfer of ownership and all other relevant details. The Competition Council launches the Guide to Vertical Agreements – The Competition Council has developed the «Guide to Vertical Agreements» to support companies that, on a case-by-case basis, must assess the compatibility of vertical agreements (…) Gardening products: Our client is the UK`s leading supplier of culture, gardening, wild bird care and pet care products. We have developed agency trade agreements for the distribution of all their products throughout the UK in independent gardening centres through agents. We have also participated in various «disputes» aimed at resolving the issue of compensation and compensation for various agents for the death, (ii) the sale of agencies and (iii) resignation, including the sale of agencies and the high court`s measures concerning the quantification of compensation, in order to include European law. A distribution agreement has similarities to an agency agreement. However, the main difference is that the distributor enters into the contract with the end user (customer) in its own name and the manufacturer is not involved, unless the warranty or liability of the product is established. A list of the main provisions generally, but not always, contained in distribution agreements: in anticipation of their future publication, we should quickly mention the decision of 16 March 2020 by which the competition authority Apple and two of its wholesalers, Tech Data and Ingram, committed antitrust practices within the distribution network of Apple products as well as a (…) Selective distribution is the case when the supplier designates a distributor under a «selective distribution system» in which it appoints additional distributors only if they meet certain criteria. It is a unique system specifically used to allow the supplier to retain control of its distribution network, particularly with regard to quality control, while working with EU and UK competition rules.
Selective distribution agreements are often used by luxury brands to ensure the maintenance of the quality of the product and the commercial will of the brand.