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The European Commission has released its updated guidelines on vertical agreements, which aim to provide clarity on how businesses can comply with EU competition law.

Vertical agreements are those between businesses operating at different levels of the supply chain, such as between a manufacturer and a distributor or between a distributor and a retailer. These agreements can include clauses related to pricing, distribution, and exclusivity, among others.

The updated guidelines, released in 2019, replace the previous guidelines from 2010 and reflect changes in the market, such as the growth of e-commerce and the increasing importance of online sales.

One key change from the previous guidelines is the increased focus on online sales. The guidelines emphasize that online sales should be treated the same as offline sales, and that businesses should not restrict the ability of distributors to sell online. However, the guidelines also note that businesses may impose certain requirements related to online sales, such as quality standards or website design, as long as these do not go beyond what is necessary to protect the brand and do not restrict competition.

Another important area of focus in the updated guidelines is the treatment of selective distribution systems. These are systems in which a manufacturer selects certain distributors based on certain criteria, such as quality standards or geographical location. The guidelines clarify that these systems can be permissible under EU competition law, but that they must be based on objective criteria and applied in a non-discriminatory manner.

The updated guidelines also provide further guidance on other areas such as resale price maintenance, exclusive dealing, and non-compete clauses. Overall, the guidelines aim to balance the need for businesses to protect their brands and ensure quality standards with the need to maintain a competitive market and protect consumer interests.

As a copy editor with experience in SEO, it is important to note that businesses operating in the EU must comply with these guidelines in order to avoid penalties and legal action. Ensuring that content related to vertical agreements is up-to-date and reflects the latest guidelines will not only help businesses comply with the law but will also improve their search engine rankings by providing valuable and relevant content to their target audience.