Do the same market share limits apply under the new VBER? And what happens if you exceed those limits?

The double market share limit of 30% is withheld in the new VBER. This means that in order for a distribution agreement to benefit from the safe haven of the VBER, two cumulative market share thresholds still have to be met:

✨ The market share of the supplier may not exceed 30% on the relevant sales market.
✨ The market share of the buyer may not exceed 30% on the relevant purchasing market.

In other words, when the market share of at least one of the parties is above the limit of 30%, the distribution agreement will not benefit from the VBER. This does however not mean that the distribution agreement is forbidden, but parties will have to self-assess whether any restriction included in the distribution agreement can benefit from an individual exemption.

The good news is that the European Commission did simplify the rules in case a market share is initially below 30%, but subsequently rises above that level. In that case, the new VBER continues to apply for a period of two consecutive calendar years following the year in which the 30% limit was first exceeded.

Interested in really deep-diving into the new VBER?

✨Join one of our interactive workshops 
✨Read the Distribution Law Center’s wrap-up countdown