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Prohibition of parallel imports as a vertical restraint: per se approach or a misunderstanding?

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  • Nikolaos Zevgolis
  • Panagiotis Fotis

Abstract

This paper attempts, on the one hand, to reveal the main principles of Competition Law (regulatory and case law framework) covering the prevention of parallel trade, mainly the prohibition of parallel imports, and on the other hand to cast light on the main effects of parallel imports prohibition imposed by an upstream supplier on the competitive structure of the downstream market. Especially, the regulatory framework that relates to Block Exemption Regulation 330/2010, (ex Block Exemption Regulation 2790/99), with Block Exemption Regulation 461/2010 (ex Block Exemption Regulation 1400/2002) in order to determine whether prohibition of parallel imports constitutes a hardcore restriction or not, while the economic analysis evaluates it in a geographical vertical market with upstream suppliers and downstream buyers which sell goods to the final (domestic) consumers. Administrative anticompetitive measures are considered as well. The results indicate that the prohibition of parallel imports by upstream firms cause vertical restraints to the domestic customers of the buyers. Copyright Springer Science+Business Media, LLC 2014

Suggested Citation

  • Nikolaos Zevgolis & Panagiotis Fotis, 2014. "Prohibition of parallel imports as a vertical restraint: per se approach or a misunderstanding?," European Journal of Law and Economics, Springer, vol. 38(2), pages 317-342, October.
    • Handle: RePEc:kap:ejlwec:v:38:y:2014:i:2:p:317-342
    DOI: 10.1007/s10657-012-9315-6
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    References listed on IDEAS

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    Cited by:

    1. Zevgolis Nikolaos E. & Fotis Panagiotis N., 2019. "A Rule of Reason Approach for Passive Minority Interests within the European Union," Review of Law & Economics, De Gruyter, vol. 15(3), pages 1-41, November.

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    More about this item

    Keywords

    Antitrust law; Vertical restraints; Block Exemption Regulation; Case law; Market imperfection; Repeated games of oligopoly theory; D43; K21; L13; L43; L67;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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