The Impact of the New Vertical Block Exemption Regulation in the Fashion and Luxury Sector

Luca Chiama, Group Legal Director, Prada, Italy

Confronted with major challenges and developments in the retail sector such as the Covid-19 pandemic and an increased importance of the online sales channel, fashion and luxury brands naturally aim to make their distribution system more efficient and to boost their trademark by entering into a variety of vertical agreements with their distributors and retailers. Such vertical agreements may expose them to the scrutiny of the European Commission (hereinafter, ’Commission”) and national competition authorities. The assessment of whether such agreements are compliant with competition law rules has, therefore, become increasingly important for luxury brands.