Object and Effect Sample Clauses

Object and Effect. An agreement infringes Article 81(1) if its object or effect is to restrict competition.44 The distinction between an agreement’s object and effect has become quite important in the assessment of vertical agreements and was first considered in the case Société Technique Minière.45 The term object is not used in its normal meaning as pointing to the intention of the parties, but should be interpreted as meaning the ‘objective meaning and purpose of the agreement considered in the economic context where it is to be applied’.46 In Société Technique Minière (STM) the ECJ considered a distribution system where STM had the exclusive right to sell in France certain grading equipment produced by a German undertaking. No absolute territorial protection was obtained by the agreement since STM was allowed to sell the goods outside France and parallel imports could be obtained from other countries. This case shows how the ECJ has reasoned upon object and effect. The ECJ starts off by examining whether the agreement has as its object to restrict competition. If this is the case, no deeper analysis needs to be carried 41 See, ▇▇▇▇▇ Competition Law of the UK an EC [1999] London pp. 144-145; ▇. ▇▇▇▇▇ and