The Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022

Rules for applying market share thresholds U.K.

7.—(1) For the purposes of applying the market share thresholds provided for in article 6 the following rules apply—

(a) the market share—

(i) of the supplier is to be calculated on the basis of market sales value data (including sales to all vertically integrated distributors for the purposes of resale), and

(ii) of the buyer is to be calculated on the basis of market purchase value data,

and where market sales value or market purchase value data are not available, estimates based on other reliable market information, including market sales and purchase volumes, may be used to establish the market share of the undertaking concerned;

(b) the market share is to be calculated on the basis of data relating to the preceding calendar year.

(2) If a market share is initially not more than 30% but subsequently rises above that level without exceeding 35%, the block exemption continues to apply for a period of two consecutive calendar years following the year in which the 30% market share threshold was first exceeded.

(3) If a market share is initially not more than 30% but subsequently rises to more than 35%, the block exemption continues to apply for one calendar year following the year in which the level of 35% was first reached.

(4) The benefit of paragraphs (2) and (3) may not be combined so as to exceed a period of two calendar years.

(5) The market share held by the undertakings referred to in paragraph (e) of the definition of “connected undertakings” in article 2(1) are to be apportioned equally to each undertaking having the rights or the powers listed in paragraph (a) of that definition.

Modifications etc. (not altering text)

C1 Art. 7(2)-(4) applied (1.6.2023) by The Competition Act 1998 (Motor Vehicle Agreements Block Exemption) (No. 2) Order 2023 (S.I. 2023/586), arts. 1(3), 8 (with arts. 12, 13)

Commencement Information

I1 Art. 7 in force at 1.6.2022, see art. 1(b)