Vertical Agreements Getting The Deal Through

55 Is there a particular point regarding the assessment of vertical restrictions in your jurisdiction that is not addressed above? Determine whether vertical restrictions can be considered pure and hard; Where the vertical restriction is not covered by the vertical category exemption regulation, 47 please circle any formal notification procedure for agreements with vertical restrictions on the enforcement authority for cartels and abuse of dominance. In addition, prohibitions on anti-competitive vertical restrictions may be enforced by commercial courts. The general prohibition does not apply to restrictions imposed on the purchaser (licensed) that do not exceed the limits of the ip holder`s legitimate rights (see question 14 for the list of authorized restrictions). Vertical agreements that contain provisions relating to the transfer or use of intellectual property rights by the purchaser are also covered by the vertical category exemption settlement (see question 18), to the extent that (i) these provisions are not the main purpose of these agreements and are directly related to the use, sale or resale of products by the purchaser or his or her customers. , and (ii) with respect to contractual products, these provisions do not contain competition restrictions that serve the same purpose as vertical restrictions that are not exempt from the vertical category exemption regulation. 51 What are the consequences of a violation of antitrust law on the validity or applicability of a contract with prohibited vertical restrictions? Vertical class exemption regulation generally exempts vertical restrictions (excluding characterized restrictions) where the supplier and buyer`s market shares in the market in which they sell and purchase contract goods or services do not exceed 30%. Such a vertical restriction may continue to be excluded from the ban by obtaining the corresponding individual authorization from the CMA if such restriction contributes to the rationalization of production, the promotion of technical or economic development, the optimization of export or import procedures, the development and application of uniform product standards, etc., unless it results in a significant restriction of competition in the market or a substantial part of it. 29 Have decisions or guidelines relating to vertical restrictions dealt with any of the restrictions on the area in which a buyer who sells on the Internet is allowed to resell contract products? Unconditionally in agreements to transfer intellectual property rights or grant the right to the exploitation of intellectual property; nor is there a public record of Ukrainian competition rules on vertical restrictions applied in a purely Internet context. 53 What are the investigative powers of the cartel enforcement and abuse of dominance authority to enforce the prohibition of vertical restrictions? The Competition Act applies to relationships that have or may affect economic competition in Ukraine, regardless of where the parties reside, the location of the agreement, etc. This provision can reasonably be construed as a doctrine of effect applicable to concerted practices in general and vertical restrictions in particular.

However, in practice, given that the CMA has exclusive authority to decide whether certain concerted practices have or could have an effect on economic competition in Ukraine, there is very little room for self-assessment.