the current eu competition policy towards vertical agreements is very supportive of internet sales and i am sure that you are aware of that mr president
hence the guidelines on vertical restraints which provide for an interpretation of regulation ec no twenty-seven ninety nineteen ninety-nine make it clear that every distributor must be free to use the internet to advertise or to sell products
it is therefore clear that suppliers cannot impose restrictions on the distributors use of the internet they cannot stop a distributor from having a web site using whichever languages they prefer on that site or sending e-mails to individual customers unless those prohibitions are objectively justified
even within selective distribution networks used notably in the luxury sector and distribution of complex products such as electronics regardless of the suppliers market share any restriction to on-line sales imposed by the manufacturer on its appointed dealers clearly infringes the competition rules
however that does not mean any retailer can sell on-line or otherwise the manufacturer's products to final consumers
a manufacturer is free to impose criteria on distributors for selling his goods on line in the same way as he is free to do so for sales in brick-and-mortar shops
such criteria may assist in building a certain image or providing a certain level of service
under the current rules selective distribution is presumed legal up to thirty of the supplier's market share since it is considered that in the absence of market power it brings more advantages than any possible harm to consumers
the commission is currently examining the way regulation ec no twenty-seven ninety nineteen ninety-nine has been applied so far and whether there is a need for further changes including in the area of selective distribution
what the commissions wants is the right balance between on the one hand ensuring that consumers can take advantage of the on-line marketplace and ensuring that manufacturers are able to organise their distribution systems as they feel appropriate
