Distributor Territory Agreement
Fourthly, the supplier must prohibit active sales by all other (European) customers in the exclusive territory or on the exclusive block of customers and protect an exclusive distributor from the active sale by all other (European) customers of the supplier. This parallel tax requirement is closely linked to the previous condition and is necessary for the operation of an exclusive distribution system. The allocation of territorial protection in a distribution agreement is not considered a “characterized restriction” provided that five conditions are met. In this case, the category exemption may give an advantage. The cumulative conditions are as follows: secondly, the French supplier can impose a ban on parties other than the Dutch distributor only to prevent them from actively attracting customers to the Netherlands, also known as “active selling”. The ban on active sales means that a German merchant does not actively target Dutch customers. The German distributor is therefore not authorized to promote or implement promotional activities based in the Netherlands.B such as unsolicited emails in Dutch monthly, weekly newspapers or the sending of unsolicited emails to Dutch interested parties. In particular, dutch advertising or advertising is considered an active sale. This does not apply to the use of the English language, as it is considered a global language and is therefore not specifically intended for a particular audience. When a German retailer sells products via a website, it is also forbidden to place banners on Dutch sites or to pay search engines to display their website when searches are carried out from the Netherlands.
These are targeted forms of advertising and advertising that can be reserved by the supplier to the distributor to which exclusive rights have been conferred in the Netherlands. Any new partnership between a distributor and a manufacturer emerges in a period of radiant optimism. Like marriage, there is a limit for the number of partnerships a supplier or trader can participate in. By moving to a new distributor, a supplier is prohibited from signing an alternative distributor. Referral to a new supplier prevents a distributor from immediately signing an additional supplier. When aligning with a new distributor, it is important to assign an area that is not too large at first. If a trader is only detected in a small area, it is not advisable to assign a large area and hope for the best. A better policy would be to open a new distribution relationship in the proven area of that distributor and gradually expand the territory after the results obtained in the smaller area indicate that an expanded geography is reasonable.