Securitization and private equity slaughter and October 2004 The content of securitization and private equity 1 1. Reinvestment of an acquisition 2 2. Borrowing financing available for an acquisition 4 3. Achievement 5 6. The VABER is accessible to all and applies to vertical agreements covering most goods and services. However, in the MVBER, the Commission adopted stricter rules with regard to vertical agreements for new vehicles, spare parts, repair and maintenance services. The aim of the MVBER is to encourage the development of multi-brand dealerships and repair points and to facilitate the cross-border sale of motor vehicles (directly or through intermediaries, including the internet). 6 The focus is on the impact on competition 7. Vertical agreements that set only the basic conditions of a given sale and purchase transaction (price, quantity, quality, etc.) do not normally restrict competition within the meaning of Article 81; However, competition restrictions may arise when an agreement results in restrictions for the buyer or supplier. Vertical guidelines (paragraphs) categorize the potential negative effects of vertical restrictions based on their basic elements.
These potential effects on competition, all of which are essentially related to the possibility of locking competitors and/or the prospect of consumers paying higher prices, are: a) b) c) barriers to entry: increasing barriers to entry may exclude other suppliers or buyers from the market. Where competitors are completely or partially isolated from a significant part of the market, higher prices may result than they otherwise would have been; Brand competition: Reducing multi-brand competition can facilitate consultation between competing suppliers (or buyers) on issues such as pricing. These potential negative effects extend not only to explicit agreements (fi-price or market-sharing cartels), but also to tacit agreements (parallel deliberate behaviour in oligopolistic markets); Intra-brand competition: Some vertical restrictions can reduce intra-brand competition between distributors of the same brand. vertical restrictions with these effects are generally less harmful than those that reduce competition between brands, as they may have a greater effect on the closure of competing brands; 6 With this objective, as explained in more detail in this publication (including annexes), MVBER imposes on MVBRs: > requires motor vehicle manufacturers/suppliers to choose between exclusive distribution or selective distribution (see Part A of Appendix 9); > requires that specific contractual provisions be included in vertical agreements in the automotive sector in order to improve the buyer`s independence from the supplier (see Appendix 9, Part B); > applies different market share criteria than VABER (see Appendix 9, Part C); and > provides for different rules for VABER with respect to restrictions considered “hard-core” (see Appendix 10) or not (see Appendix 11). 3 years and May 3 Introduction 1. This publication explains how EU competition rules apply to vertical agreements (i.e. essentially agreements for the sale or purchase of goods or services between parties operating at different levels of the economic supply chain within the meaning of the respective agreement).