It concerns competition policy and two proposals in connection with vertical agreements.

In this we can take the block exemption regulations on vertical agreements as an example and set a period of 18 months.

Those who are aware of the reality on the ground know better than anyone that vertical agreements go together with substantial material and relational investments.

The next item is the Commission communication on vertical agreements and concerted practices in the automobile industry.

A vertical agreement is a term used in competition law to denote agreements between firms at different levels of the supply chain.

Vertical agreements enable us to guarantee consumer safety and contribute to enhancing the industry's robustness.

Some vertical agreements, such as exclusive distribution and exclusive purchasing, have been examined under this framework.

In 1997 the Commission set out these and other findings and published a Green Paper on vertical agreements.

Wood declined to adopt the more controversial conclusion that the vertical agreements between manufacturers and retailers have an adverse effect on competition.

We have already done so for distribution - vertical agreements - and we are now doing it for horizontal agreements.

The first provision is Article 81 EC, which deals with cartels and restrictive vertical agreements.

Franchising is a form of vertical agreement, and under European Union competition law this falls within the scope of Article 101.

Whether a vertical agreement actually restricts competition and whether in that case the benefits outweigh the anti-competitive effects will often depend on the market structure.

First of all, this question lies beyond the scope of the present policy review which is concerned with competition policy as it relates to vertical agreements.

Monitor could support guidence on vertical agreements - they also need a shared vision with NCB on integrated delivery.

Thirdly, the Commission has also introduced a collection of block exemptions for different types of contract and in particular in the case of vertical agreements.

However, the question then arises of the point at which a vertical agreement actually threatens to disrupt the situation on the market and to work against normal competitive relations.

Nor is too much scope for vertical agreements a good thing, since retailers can then become pawns in the game of chess played out between major distributors and producers.

For instance, a manufacturer of consumer electronics might have a vertical agreement with a retailer according to which the latter would promote their products in return for lower prices.

Once the Council has approved the Council regulation, the Commission will draw up a proposal for a block regulation covering all vertical agreements below a certain market threshold.

And while I shall not go further into the substance of the problems, vertical agreements can be both pro-competition and anticompetition - it all depends on the context in which they are made.

One way to avoid the hold-up problem is for the firms to merge, a tactic known as vertical integration, or to enter vertical agreements, e.g. an agreement with a non-compete clause.

It is probably easier to assess the internal market situation by judging the impact of vertical agreements than by applying strict formal criteria, particularly as small economic operators would then benefit from simplified formalities.

Fourth, vertical agreements between a business and a supplier or purchaser "up" or "downstream" raise concerns about the exercise of market power, however they are generally subject to a more relaxed standard under the "rule of reason".

This exemption applies to small companies, together holding no more than 10% of the relevant market in the case of horizontal agreements and 15% each in the case of vertical agreements (the de minimis condition).