Plenary Session #2: Presentation of the UCWG vertical restraints project
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1 Plenary Session #2: Presentation of the UCWG vertical restraints project Marcus Bezzi Executive General Manager Specialised Enforcement & Advocacy Division
2 Online distribution restraints Competition concerns Foreclosure foreclosing competition from online retailers foreclosure of suppliers access to customers foreclosure of competing platforms/direct supply Softening competition between retailers (intra-brand competition) between suppliers (inter-brand competition) between platforms Facilitating collusion between retailers between suppliers between platforms
3 ICN 2015 Report - Conclusions Analytical framework used to assess offline vertical restraints seems applicable to online vertical restraints Balance efficiency/market failure issues v competition concerns Legal frameworks applicable to online vertical restraints in most ICN jurisdictions involve a competition test But greater disparity for RPM Level of concern for all four Vertical Restraints in the member survey Less concern about international Geographic Price Discrimination Online RPM most common subject of investigations Across Platform Parity Agreements (APPAs) are a new form of vertical restraint in the online world Several significant cases Generally members consider existing legal and analytical frameworks and investigative techniques sufficient Greatest need for ICN assistance identified in relation to online RPM (which could bring in imaps etc) and APPAs
4 Online distribution restraints Agency s concerns Online sales bans & limitations Geographic price discrimination Resale Price Maintenance RPM facilitating conduct Across platform parity & most favoured customer obligations Is one of our top priorities Is of concern Is not yet prevalent enough to be of concern but is increasing in prevalence Is not a concern Is not a competition issue Total
5 Vertical restraints project Purpose and Objectives Promote greater understanding about assessment of vertical restraints Consider the treatment of vertical restraints by ICN members in order to: promote increased understanding of differences in standards that exist; and where possible, explore the possibility of greater convergence. Do this by developing a series of hypothetical papers examining the effect on competition and any associated efficiencies of certain conduct Expose common shared as well as divergent approaches used by agencies in the assessment of the vertical restraints.
6 Vertical restraints project The hypotheticals An Online Travel Agent scenario considering the impact of cross platform parity agreements An offline vertical restraint in the grocery retail market An online selective distribution case Further information
7 Vertical restraints project Progress update Timing Task Progress June/July 2017 Identification of focus topics for hypotheticals and preparation of outlines for each Completed August 2017 Draft project plan and agree between co-chairs Completed August/Nov 2017 Nov 2017 Dec 2017/Feb 2018 Prepare detailed hypotheticals for use in UCWG workshop sessions based on agreed outlines Consideration at UCWG workshop of hypothetical scenario and common/divergent approaches used in the assessment of the vertical restraints scenarios in various jurisdictions Compare and contrast the assessment of the vertical restraint scenarios in different jurisdictions and document this in the materials Completed Workshop in progress Ongoing March 2018 Present finalised hypotheticals at 2018 Annual Meeting Ongoing pending the outcomes from the November 2017 workshop April 2018 Share finalised material with members (on ICN website) for their future use TBC
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