Legal Implications of Exclusive Distribution Agreements

This document is a legal report discussing the recent judgment by the European Court of Justice (ECJ) in the case of Beevers Kaas (Case C‑581/23), which clarifies the conditions under which suppliers can lawfully restrict active sales in exclusive distribution agreements. The report outlines that such restrictions must be based on an express or tacit agreement between the supplier and all affected distributors. It details the principle of parallel imposition, which requires that any active sales restrictions apply uniformly across the distribution network. The ECJ emphasizes that the absence of active sales alone does not constitute an agreement and that the VBER safe harbour is only applicable when there is credible evidence of both supplier intention and distributor acceptance. The report concludes with practical implications for suppliers, highlighting the need for clear contractual terms, retention of evidence for tacit agreements, and ongoing compliance monitoring to ensure adherence to the VBER requirements.