Newsletter On the Amendments to The Communique on Block Exemption Regarding the Vertical Agreements
“Communique on the Amendment of “Communique on Block Exemption Regarding the Vertical Agreements (Communique No: 2002/2)” (Communique No: 2021/4)” (“Communique“) has been published in the Official Gazette dated November 5, 2021 and numbered 31650. The market share ratios which are required for vertical agreements to benefit from the block exemption have been amended with the Communique.
Changes in market share ratios have been updated as follows:
The share ratio in the relevant market where the buyer receives the goods and services with an obligation to provide goods or services to a single buyer in vertical agreements and for the suppliers, the share ratio in the relevant market in which it provides the goods or services subject to the vertical agreement has been decreased from 40% to 30%. Thus, undertakings will be able to benefit from block exemption as long as they do not exceed 30% market share in the relevant market.
With respect to the implementation of the newly amended 30% market share threshold:
- If the market share is not more than 30% initially, but then rises above the said 30% threshold, but not exceeding 35%, the exemption will be applied for the next two years as of the year in which the market share threshold was first exceeded
- If the market share does not exceed 30% initially, but then rises above 35% threshold, the exemption will be applied during the year in which 35% threshold was first exceeded.
In accordance with the Provisional Article 3 of the Communique, in order for the undertakings, which have been benefiting from the block exemption before the implementation of aforementioned amendments and new thresholds, to still benefit from the exemption within the scope of the Communique, they should comply with the said 30% market share threshold within 6 months at the latest (until May, 5 2022).
It is advised that undertakings which have benefited from block exemption within the scope of the Communique prior to the new amendments; to re-evaluate their market shares in the relevant markets and to confirm that they are below the new thresholds introduced by the Communique. Otherwise, an individual exemption application may be proposed for the relevant vertical agreements if the thresholds are exceeded after the period specified under the Provisional Article 3 of the Communique.