NEWSLETTER-2017

97 COMPETITION LAW in various member states. The EU Commission, however, states that this may give rise to problems with regard to the distribution and brand strategies of manufacturers. Within the context of the E-Commerce Report, the EU Commis- sion monitors the market trends and observes the market. One of the observations is that with the growth of e-commerce, manufacturers have started to sell their products directly through their own online sales channels. In this way, manufacturers compete with their own retailers. Another observation is related to the expansion of selective distribution systems: manufacturers endeavor to better control their distribution networks. Manufacturers aim to have not only more con- trol over their retailers’ distribution qualities, but also their prices. This fact is confirmed by the increase in the usage of selective distribution systems experienced in the last ten years. Main Competitive Concerns Selective Distribution Systems The EU Commission states that pursuant to vertical block ex- emption regulations, qualitative and quantitative selective distribution systems are applied under certain conditions, and are not considered as hardcore restrictions. The EU Commission does not consider that an amendment is necessary on this issue. However, the EU Commission highlights one point: some manufacturers limit retailers who wish to conduct solely online sales, and oblige sellers to engage in traditional distributorship, as well as online sales. The EU Commission points out that the condition of traditional distribution does not aim to create an increase in the distribution service and, to the contrary, it seeks to exclude those sellers who wish to conduct only online sales. For this reason, the obligations related to the condition of engaging in tradi- tional distribution shall be analyzed more closely in situations where the conditions’ connection with the quality of distributorship or other activities cannot be determined.