The new category certificate and category licence are to be welcomed. They recognise the positive contribution which vertical agreements normally make to economic life. While the use of market share thresholds introduces a degree of uncertainty in relation to the application of the documents (particularly for companies with market shares which may be close to the thresholds), this seems a small price to pay for a more realistic recognition of the effect on competition of such agreements. In practice, this approach will eliminate the need to consider the possible application of the Competition Act to the vast majority of vertical agreements. Of course, where such agreements may affect trade between EU Member States, the European Commission’s existing block exemption regulations will remain relevant until they too are replaced by a more flexible regime. It is to be hoped that any divergences which may arise between the new Irish regime and the Commission’s new block exemption regulation will not cause too much difficulty for businesses marketing their goods and services in Ireland.

Gerald FitzGerald
McCann FitzGerald
Dublin