2020 TSMA

36 2020 Taiwan Sporting Goods Manufacturers Association This pending review and reform can also have a significant impact on Taiwanese sporting goods man- ufacturers and traders doing business in Europe. Cur- rent business models such as exclusive distribution by appointing at wholesale level a distributor for a certain geographic area, online and offline sales con- ditions, the relationship with retailers, pricing issues, sales via Internet platforms such as a presence on Am- azon marketplace, all this can be affected by the VBER 2010 reform. The most likely outcome of Brussel’s VBER 2010 evaluation process will be a comprehensive revision of the existing EU piece of legislation together with its accompanying guidelines, since when the present version of VBER 2010 had been created, the world had still looked different in particular in the area of online sales, Internet advertising, social media and the like. Nearly all distribution schemes are covered by this Regulation, be it at wholesale and/or retail level. Its reform will significantly affect brands/manufacturers, importers, distributors, retailers and also end consum- ers same as any other purchasers of sporting goods within the whole supply chain. Especially omni-chan- nel issues play a substantial role in this evaluation pro- cess by letting Brussels take a close look at online and offline sales practices, pricing, advertising and other commercial terms and conditions. Several verdicts of national and European courts same as a number of rulings of national competi- tion authorities and of the European Commission are based on the grounds of the VBER 2010 and on Articles 101 and 102 TFEU, plus on provisions of na- tional competition laws within the European Union and the European Economic Area. This applies e.g. for restrictions imposed by brands on retail customers to participate in price search engine activities, the very controversially discussed contractual ban of retailers in the framework of selective distribution systems to be active on third-party open platforms such as eBay and Amazon, the scope and limitations of commercial terms and conditions in the area of granting specific incentives and financial benefits such as discounts to brick-and-mortar retailers. National and European Cartel Offices pay more and more attention on vertical supply chain issues as proven by an increased number of substantial fines imposed on manufacturers, who disregarded in particular price resale maintenance prohibitions. It is therefore not exaggerated, when leading brands in the sporting goods sector described the actual VBER revision of the EU Commission as being of key importance for the continued existence and even survival of their current distribution model.