Selective Distribution and Online Sales

During the ten years that passed since the last Vertical Block Exemption Regulation and accompanying Guidelines were introduced, the global market has developed in a rushing speed, much thanks to the Internet. The growing online markets have created enormous opportunities, as well as problems, by shrinking the world and completely change the possibility to control markets. Therefore, the treatment of online distribution was at heart of the discussion when the old rules were to be reviewed. The main issues approached were the application of the concepts of active and passive sales on the internet and the ways in which suppliers may restrict the online behaviour of their distributors within exclusive and selective distribution systems. The work highlights the debate between the promoters for selective distribution systems on one side and the so called pro-internet lobby on the other. It further evaluates the new Vertical Block Exemption Regulation and accompanying Guidelines regarding their treatment of selective distribution and makes a prospective examination of the view on selective distribution in European Competition Law, especially regarding online sales.