Which distribute stroom bakfiets products in romania

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Reference no: EM133665854

Assignment:

Stroom Bakfiets bv ('Stroom Bakfiets') is a Dutch company that produces high-quality family cargo bikes. Its latest product, an electric cargo tricycle capable of transporting up to four children, has made the company very popular in the Netherlands.

Stroom Bakfiets is now trying to expand its market in Romania. In order to do so, Stroom Bakfiets has contacted Biciclete Cargo S.r.l. ('Biciclete Cargo'), a distribution company based in Bucharest, which agreed to distribute Stroom Bakfiets' products in Romania.

The European Commission (DG comp.) has recently started to investigate the relationship between Stroom Bakfiets and Biciclete Cargo on suspicion of anti-competitive behavior.

These are the key terms of the agreement under which Biciclete Cargo is distributing Stroom Bakfiets' products in Romania:

Biciclete Cargo has the sole right to distribute and sell Stroom Bakfiets' products in Romania: Stroom Bakfiets will not personally sell its products in Romania, will not engage anyone else to sell its products in Romania, and will also instruct its distributors in other member states not to do so.
Biciclete Cargo is prohibited from selling Stroom Bakfiets' products in any member state other than Romania.
Stroom Bakfiets will set the maximum sale price which Biciclete Cargo must apply to Stroom Bakfiets' products.

Stroom Bakfiets' market share in Romania does not exceed 5 per cent while Biciclete Cargo's market share there amounts to 17 per cent.

With reference to the relevant European Union case law and legislation, advise whether the agreement between Stroom Bakfiets and Biciclete Cargo breaches European Union competition law.

Reference no: EM133665854

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