The European Union is currently undergoing a consultation process for the Vertical Agreement Block Exemption Regulation (VABER), which is set to expire in 2022. This regulation applies to agreements made between suppliers and distributors or retailers, which can affect competition within a specific market.

VABER aims to promote competition and benefit consumers by allowing certain agreements that meet specific criteria to be exempt from the EU`s competition law. These agreements include selective distribution agreements, which limit the number of distributors or retailers that can sell a particular product, and exclusive distribution agreements, which restrict a supplier to using only one distributor or retailer within a particular market.

However, the European Commission is now reviewing the regulation and seeking feedback on potential changes. The consultation process will end in September 2021, and the feedback will be used to help the European Commission decide whether or not to renew the VABER.

One of the proposed changes is to expand the scope of the regulation to include online sales and marketplaces. With the rise of e-commerce, online sales have become increasingly important for suppliers and distributors alike. Many vertical agreements now involve online marketplaces, and the European Commission is seeking to ensure that these agreements are included in the VABER.

Another potential change involves updating the criteria that must be met to qualify for the VABER exemption. The existing criteria include not exceeding certain market share thresholds and not containing certain anti-competitive clauses. However, there are concerns that the current criteria are too vague and allow for too much discretion, leading to uncertainty for businesses.

As a professional, it is important to note that these potential changes could have a significant impact on businesses operating within the EU. By updating the VABER, the European Commission aims to promote fair competition and protect consumers, but the changes must strike a balance between protecting businesses and promoting innovation.

In conclusion, the current consultation process for the Vertical Agreement Block Exemption Regulation highlights the European Commission`s commitment to promoting competition and protecting consumers in rapidly changing industries. The potential changes proposed in the consultation could have a significant impact on businesses operating within the EU, and it is therefore essential that stakeholders provide feedback to ensure that the updated regulation is both fair and effective.