Distribution agreements: overview (UK)
This practice note provides an overview of the principal legal and commercial considerations when appointing a distributor in the UK. The note examines the distinctions between distributors and agents, and explores the differences between exclusive, non-exclusive, sole and selective distribution models. It offers guidance on navigating UK competition law, focusing on the Vertical Agreements Block Exemption Order (SI 2022/516) and its safe harbour provisions. Key issues addressed include the 30% market share threshold, hardcore restrictions such as resale price maintenance, and the distinction between active and passive sales. The guidance also covers the specific competition law challenges of online distribution, such as dual pricing and parity clauses, alongside compliance matters like the Bribery Act 2010 and the Modern Slavery Act 2015.
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