NEWSLETTER-2019-metin

106 NEWSLETTER 2019 Restrictions on Wholesale and Retail Cross-selling among Selective Distribution Network Members The Commission determined that a number of provisions in Guess’s distribution agreements limited the ability of wholesalers and authorized retailers to promote and sell Guess products to other wholesalers or authorized retailers within the selective distribution network of Guess, therefore, limiting competition in the EEA 20 . Restrictions on Cross-border Sales to End-users It was concluded that certain provisions of the distribution agree- ments prevented retailers from selling Guess products to end-users outside their allocated territory. It was particularly emphasized that the restrictions were aimed at both active and passive sales; in other words, they allowed neither advertising, nor sales, outside the allo- cated territory 21 . Resale Price Maintenance Finally, the Commission found that Guess violated Article 101 of the TFEU by way of intervening in the resale prices of its autho- rized resellers. In particular, it was determined that Guess monitored the pricing of its retailers, and attempted to influence them to correct resale prices that they considered to be “misaligned” with Guess’s “recommended” resale prices 22 . Implications and Remarks In the Guess case, the Commission condemned an undertaking with a selective distribution system that practiced several hardcore restrictions. The decision constitutes a considerable benchmark for companies, as it sets forth the Commission’s attitude towards a num- ber of different vertical restrictions. Most importantly, the decision sheds new light on the Commis- sion’s approach to online search advertising restrictions. In the Com- 20 Case AT.40428, 17.12.2018, para. 64-78. 21 Case AT.40428, 17.12.2018, para. 83. 22 Case AT.40428, 17.12.2018, para. 87.