COMPETITION • EUROPEAN LAW • RESTRICTIVE AGREEMENTS
Excluded restrictions (or red clauses) cover clauses that contain a restriction of competition, the presence of which, unlike a hardcore restriction does not lead to the loss of the block exemption applicable to a type of agreement for the whole agreement, but only for the clause in question. In the case of vertical restraints, this includes, for example, non-compete clauses of indefinite duration or exceeding five years, or clauses that prohibit the members of a selective distribution network from selling the brands of specific competing suppliers (brand clubs). In terms of horizontal restrictions, an excluded (or red) clause is, for example, a clause in a research and development agreement that prohibits the granting of production licenses for the contractual products or the use of the contractual technologies to third parties.
