In a significant development for competition law, Advocate General Juliane Kokott Medina of the Court of Justice of the European Union (CJEU) has issued an opinion in the case concerning Beemster cheese distribution, highlighting how EU law applies to exclusive distribution agreements. The opinion, issued on January 9, 2025, addresses the ongoing dispute between Beevers Kaas, an exclusive distributor in Belgium, and Albert Heijn supermarket chains.
Key Points of the Opinion
- Exclusive Distribution Protections: Advocate General Medina emphasized that suppliers must ensure exclusive distributors are protected from active sales in their territories by other buyers. Active sales refer to direct marketing efforts such as advertisements or customer outreach.
- Acquiescence Requirement: The opinion introduces a “parallel imposition requirement,” asserting that other buyers must explicitly or tacitly accept the prohibition of active sales into the distributor’s exclusive territory. This requirement is essential for the agreement to qualify under the EU’s block exemption rules (Regulation No. 330/2010).
- Burden of Proof: Suppliers must demonstrate that this acquiescence exists throughout the period for which the block exemption is claimed. Merely observing that other buyers have not engaged in active sales is insufficient.
Background
Beevers Kaas, the exclusive distributor of Beemster cheese in Belgium and Luxembourg since 1993, accused Albert Heijn of undermining its exclusive rights by engaging in practices that indirectly affect market integrity. The dispute reached the CJEU via the Antwerp Court of Appeal to clarify whether the distribution agreement complies with EU competition rules.
Implications
The Advocate General’s opinion is not binding but often influences the court’s final ruling. This case could set a precedent for how exclusive distribution agreements are enforced under EU law, potentially impacting supplier-distributor relationships across various industries.
The court’s judgment is expected at a later date, with the Advocate General’s findings providing a roadmap for interpreting exclusive distribution rights and active sales bans under EU competition law.
Source: https://curia.europa.eu/jcms/upload/docs/application/pdf/2025-01/cp250003en.pdf
