What is the Vertical Block Exemption Regulation (VBER)?

Dutch term: VBER | Legal basis: Regulation (EU) 2022/720

The Vertical Block Exemption Regulation (VBER, Regulation (EU) 2022/720) provides a safe harbour for vertical agreements (distribution, agency, franchise, supply) under EU competition law. Agreements between parties with a market share below 30% are exempt from the prohibition on anti-competitive agreements, provided they do not contain hardcore restrictions.

Hardcore restrictions that cannot benefit from the block exemption include: resale price maintenance (fixing minimum resale prices), certain territorial and customer allocation restrictions, restrictions on passive sales, and outright prohibitions on online sales. Non-compete obligations exceeding five years also fall outside the safe harbour. The 2022 VBER introduced specific guidance on dual distribution and online sales restrictions.

Why it matters for international businesses

For manufacturers drafting distribution and franchise agreements for the Dutch and EU market, VBER compliance must be built into every exclusivity, pricing and territorial clause.