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Men's World PLC ('MW'), an Irish manufacturer of beauty products makes substantial sales worldwide. MW's marketing director, Sunit comes to see you to discuss the

Men's World PLC ('MW'), an Irish manufacturer of beauty products makes substantial sales worldwide. MW's marketing director, Sunit comes to see you to discuss the proposed terms of a distributorship agreement relating to the sale of a new organic facial sunscreen, recently developed by MW for sportsmen. The agreement will be entered into with an Irish company called Beauty Starts Here Limited ('BSHL'). Although BSHL is a relatively small company, Sunit is convinced that its staff have the enthusiasm to successfully sell MW's new product. The main terms of the draft agreement are as follows: i) MW will not make direct sales nor supply directly in Ireland to anyone other than BSHL; ii) MW shall provide a recommended price structure to BSHL; and iii) BSHL shall not attempt to sell MW's products outside Ireland. MW wishes to enter into the same distributorship agreement with other distributors throughout the EU.

Answer all of the following questions relating to the application of Article 101 TFEU. In essay form using irac

(a) Explain whether the proposed distributorship agreement between MW and BSHL could constitute a form of anti-competitive collusion under Article 101(1) TFEU.

(b) Based on preliminary market research investigations, it has been identified that the relevant market is men's facial sunscreen in the whole of the EU. MW's existing sales provide it with a share of 15% of this market. Advise the parties on the availability of Regulation (EU) 2022/720 (the vertical agreements block exemption).

(c) Assuming that the European Commission finds there to be a breach of Article 101(1) TFEU, explain the consequences for MW and BSHL. Compare and contrast the actions that could be taken if MW is proposing to implement the proposed distributorship agreement within the US.

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