This chapter examines the application of Article 101 TFEU and the Chapter I prohibition in the UK Competition Act 1998 to vertical agreements. The chapter begins by briefly describing the distribution chain, followed by sections on how the law applies to vertical integration and agency agreements. It discusses the competition policy considerations raised by vertical agreements, including the challenges presented by the emergence of online commerce. It explains the application of Article 101 to various vertical agreements while considering the case law of the EU Courts and the position of the Commission in its Guidelines on Vertical Restraints. The chapter goes on to discuss the provisions of Regulation 330/2010, the block exemption for vertical agreements; and the application of Article 101(3) to vertical agreements. The chapter then contains sections on Regulation 461/2010 on motor vehicle distribution and on sub-contracting agreements. Finally, it looks at the position in UK law.