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From course:

Industrial Organisation 2022

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Question:

Bundling, tying and resale price maintenance are generally prohibited by the competition act. What is the block exemption for certain vertical agreements?

Author: Hjalmer Pedersen



Answer:

• Exempts companies if their market share is less than 30% (both buyer and seller share) who take part in the bundling/RPM/Tying. • The rationale is that vertical agreements between non dominant companies meet the requirement § 8 paragraph 1 • A block exemption is a general exemption for similar categories of agreements,


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