The development of Internet retailing implies the presence of competing interests among the participants of the supply chain and requires regulation of vertical restraints. As government regulation of the vertical restraints due to their possible anticompetitive effects, then the change in the nature of competition requires a review of applicable regulations, which were adopted on June 1, 2010 in the EU. The new rules of regulation on the vertical restraints will remain in place until 2022.
The paper studies the specific features of trade-off between type I and type II errors in vertical restraints regulation. It pays attention to possible deviations from trade-off logic due to separate consideration of enforcement errors and some imperfections of Russian legal rules. The game theoretic model which is discussed in the second part of the article can be useful for formal analysis of externalities created by the enforcement errors.