Exclusive Distribution Agreement Malaysia

Where an agreement is contrary to Section 4, the parties can justify their conduct by demonstrating the competitive advantages of Section 5 (see question 15). If resale prices are maintained for a limited period of time, MyCC will likely take into account the weakening of the resale approach in the European Union and the United States. For example, short-term price retention may be useful in advance during the introduction phase to encourage distributors to promote the product or offer pre-sales services for the experience or complex products that benefit consumers. MyCC believes that restrictions that are not cheap in Safe Harbor agreements are generally not anti-competitive. Non-competitive vertical agreements cannot be considered „significant“ anti-competitive effects if the individual market share of the seller or buyer does not exceed 25% of the market in question. No, there have been no decisions or guidelines on this point. This is specific to the facts and is open to the parties to demonstrate efficiency gains and meet the criteria set out in Section 5 (see question 15). In its guidelines on anti-competitive agreements, MyCC states that some agreements generally cannot be considered significant anti-competitive effects. Vertical agreements are not competitors and neither party individually holds more than 25% of the market in question. However, this may not apply to price agreements. Are there general exceptions to cartel and abuse legislation for certain types of agreements with vertical restrictions? If so, please describe. In October 2014, MyCC concluded its first vertical restrictions deal with two major suppliers of logistics and shipping services by sea – Giga Shipping Sdn Bhd and Nexus Mega Carriers Sdn Bhd – with their automakers, dealers and retailers.

These agreements may have the effect of closing customers to competitors of firms, which, if established, would have the effect of preventing, restricting or significantly distorting competition in the provision of these services. To address these concerns, both parties had to commit to ending the inclusion of exclusivity clauses in their agreements. „vertical agreement“ is defined as an agreement between companies operating at a different level in the production or distribution chain. Where a firm is dominant in a market, it is also appropriate to consider whether the restrictions in its vertical agreements constitute an abuse of a dominant position.

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