refusal to supply

refusal to supply

a business practice whereby a supplier acts to cut off supplies of his product to a distributor, either because the distributor has been found to be unsatisfactory in handling the product (i.e. failing to meet the terms of his CONTRACT), or as a means of coercing the distributor to accept such practices as EXCLUSIVE DEALING AND TIE-IN SALES. In the UK, a refusal to supply which is suspected of having detrimental effects on competition can be investigated by the OFFICE OF FAIR TRADING and the COMPETITION COMMISSION:

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

refusal to supply

a type of ANTICOMPETITIVE PRACTICE/RESTRICTIVE TRADE PRACTICE whereby a seller deliberately withholds supplies to customers as a means of enforcing EXCLUSIVE DEALING, TIE-IN SALES, FULL-LINE FORCING and RESALE PRICE MAINTENANCE. Under the COMPETITION ACT 1980, a refusal to supply can be investigated by the OFFICE OF FAIR TRADING and (if necessary) by the COMPETITION COMMISSION and prohibited if found to unduly restrict competition. See COMPETITION POLICY.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005