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The new block exemption Regulation 2970/99 and the EC Commission's Guidelines on vertical restraints represents a radical departure from the traditional evaluation of restrictions of competition included in distribution and other vertical agreements. This work contains a thorough yet practical analysis of the new block exemption and the accompanying Guidelines. It is divided into three main parts. Part one examines the evolution of the treatment of vertical restrictions under EC competition law. Part two contains a detailed and critical analysis of the provisions of the regulation and the Guidelines and seeks to uncover the underlying methodology of the EC Commission's analysis, inconsistencies and the practical importance of individual provisions. Part three discusses the treatment of a number of specific vertical agreements, including agency-, industrial supply-, selective distribution- and other supply agreements.