exclusive dealing


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exclusive dealing

a business practice whereby a supplier contracts distributors/ retailers to sell his products on an exclusive basis (i.e. to refrain from handling the products of rival suppliers). Retailers are rewarded for sole representation in a variety of ways including preferential discounts, back-up services and loans. The practice of exclusive dealing may help the supplier boost his sales and protect market share because distributors have an undivided commitment to the product. However, if undertaken by a DOMINANT FIRM, the practice may serve to limit competition in a market by depriving rival suppliers of distribution outlets. See ANTICOMPETITIVE PRACTICE, COMPETITION ACT, 1980, OFFICE OF FAIR TRADING.

exclusive dealing

a type of ANTICOMPETITIVE PRACTICE/RESTRICTIVE TRADE PRACTICE whereby a supplier contracts distributors to deal only in his products to the exclusion of competitors’ products. Exclusive dealing may be beneficial in some cases by allowing distribution costs to be lowered but, if exclusive dealing is pursued by several large firms in a market, the access of smaller suppliers and potential entrants to established distributive outlets may be severely restricted. Under the COMPETITION ACT 1980, exclusive dealing can be investigated by the OFFICE OF FAIR TRADING and (if necessary) by the COMPETITION COMMISSION, and prohibited if found to unduly restrict competition.
References in periodicals archive ?
While Howard Marvel's free riding explanation of exclusive dealing retains its prominence, other related free riding explanations have recently been offered, along with other efficiency based explanations.
Chapters also cover customer and territorial restraints, trying arrangements, exclusive dealing and incentives to induce exclusive dealing, and price discrimination and the Robinson-Patman Act.
Supreme Court has left standing an appellate court's decision that under the antitrust laws, a sales representative can challenge the exclusive dealing requirements and territorial restrictions imposed by two furniture companies (Bassett Furniture Inc.
The Commission found that FEG "was operating a collective exclusive dealing arrangement involving the FEG, the association of importers of such products in the Netherlands (NAVEG) and a large number of individual suppliers of such products".
The European Commission has stung the Dutch association of electrotechnical equipment wholesalers, FEG (the Nederlandse Federatieve Vereniging voor de Groothandel op Elektrotechnisch Gebied), as well as its biggest member, Technische Unie (TU), with fines for collective exclusive dealing and price-fixing.
Irrespective of whether there was exclusive dealing contract or an exclusive agency contract, the tenants could not unilaterally prevent the broker from performing its duties by dealing themselves directly with O&Y.
antitrust lawsuit alleging a boycott and exclusive dealing by News America and Albertson's and monopolization, attempt to monopolize and false advertising by News America.
One popular way to frame the antitrust analysis of a vertical practice such as exclusive dealing is to assess the probability that it serves efficiency.
If AMCON breaches the exclusive dealing obligation during the period from November 30, 2005 through February 27, 2006, or signs a letter of intent or an agreement relating to the acquisition of, or a business combination with or an investment in THE during that period, then AMCON would be required to pay a breakup fee of $550,000 at the closing of any such third-party acquisition.
Kitt has conducted a number of analyses focusing on the competitive effects of various kinds of vertical restrictions, including territorial exclusivity and exclusive dealing, in connection with dealer termination and related litigation.
It is apparent to anyone familiar with this string of disputes that K-C has pulled out all the stops to attempt to find an angle to escape the 25 year exclusive dealing contracts its predecessor, Scott Paper, signed with MESC in 1994 in exchange for $350 million.
The lawsuit alleges, among other claims, that Microsoft harmed Be through a series of illegal exclusionary and anticompetitive acts designed to maintain its monopoly in the Intel-compatible PC operating system market and created exclusive dealing arrangements with PC OEMs prohibiting the sale of PCs with multiple preinstalled operating systems.