NEWSLETTER-2019-metin

107 COMPETITION LAW mission’s view, Guess’s objectives to reduce competitive pressure on its own online retail activities, and to keep its advertising costs to a minimum, were not legitimate. Therefore, in categorizing Guess’s AdWords restriction as restricting competition ‘by object,’ the deci- sion suggests that it may be difficult for brand owners to justify such restrictions under the EU competition rules. Furthermore, throughout its reasoned decision, it can be observed that the Commission made extensive reference to Guess’s internal strategy papers, as well as the selective distribution contracts, in reach- ing its findings. The decision thus serves as a reminder that internal company documents may very well be utilized for the assessment of anti-competitive conduct. It is safe to say that e-commerce and online distribution remain a priority to the Commission, as evidenced by decisions, such as the Guess decision. The Guess decision, along with decisions that may result from the investigations, which were opened since the launch of the e-commerce inquiry, provide useful insight into the Commission’s priorities going forward. In this respect, since the Vertical Agreement Block Exemption Regulation will expire on 31 May 2022, the Com- mission will most likely evaluate whether the current vertical rules are still efficient and plausible in the age of e-commerce. Therefore, in relation to new forms of online sales restrictions, the Commission con- tinues its evaluations by way of decisions, such as the Guess decision, and sets the field for the new approach with respect to online markets.