The Economic Crisis in Europe

Due to the financial crisis that began in 2007, several regulations have been adjusted so as to prevent any financial and economic meltdown in European countries. This economic crisis can be said to have directly affected some of this regulation. A good example in this case is the regulation 330/2010 and commission guidelines on vertical restraints of competition. Though in the 2790/1999 regulation, there was a provision of a safe harbor, it did not specify the market share of a supplier under the additional market share threshold clause. Due to the economic crisis experienced, the 330/2010 regulation limits the suppliers market share to 30 percent.  All this was done to curb the economic crisis (Wareham et al, 2010).

Under the selective distribution clause, the former regulation 2790/1990 allowed a distribution system where the supplier of goods or service selected its distributors and barred them from reselling to any unlawful distributor across EU. This was seen to fuel an economic crisis, and thus in the regulation 330/2010, adjustment were made so that suppliers are now able to stop members of a selective distribution network from selling to unlawful distributors only inside a territory set aside by the seller to operate that system.  This has been adjusted due to the financial crisis experienced in EU (Economist, 1920).

Furthermore, the economic and financial instability experienced by European countries, has made European commission establish a regulation to allow manufacturers to protect exclusive distributors from the active sales by other distributors. This has significantly influenced the establishment of the vertical restraint competition regulation; this is meant to encourage the distributor to invest exclusively in the allocated customer groups and territory.  The regulation also enhances selective distribution, which was to allow manufacturers to choose their distributors on the basis of specified standards and to prevent sales to unauthorized distributors. This regulation guaranteed active sell by distributors to authorized distributors within the internal market and to the end consumer. This regulation was meant to harmonize the European market was in the midst of economic meltdown.

In the midst of the financial and economic crisis in Europe, the European union was interested in a continued of enforcing the Anti-trust policy in its vast European market. This was aimed at identifying anticompetitive practices that are normally evident during economic meltdown. The commission established an investigative tool for determining whether the European economic market was working and recovering from recession as expected (Wareham et al, 2010).

This investigative tool is applied when there is limited trade between state, price rigidity and lack of the new entrant in the market or evidence of market distortion, which was the case during the current economic crisis that was facing European region. The antimonopoly enforcement was actually focused on the information and communication technologies (ICT), which form the largest part of European region market.

According to the regulation 330/2010 hardcore issues, internet sales and market share threshold were seen to be some of the factors contributing to the economic crisis.  As seen from the above, this regulation has tried to counter the effects of these factors so as to stabilize the market economies of the entire European region. In a nutshell, economic crisis is aggravated by a number of factors and extra caution need to be taken as regards to the vise (Wareham et al, 2010).

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