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:

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.
References in periodicals archive ?
Environmental information.The European Commission has decided to send a letter of formal notice (first written warning) to France over its refusal to supply to the Commission a copy of a key French scientific inventory of sites that qualify for inclusion in the Community's nature conservation network, Natura 2000.
'Sun alleges that the launch of Windows 2000 on February 17, 2000, was a final step in Microsoft's strategy to strengthen the effects of its refusal to supply interface information with the intention of driving all serious competitors out of the server software market,' the Commission said.
Secondly, the Commission considers that DPAG's practice of intercepting incoming cross-border mail followed by claims for surcharges of a prohibitive nature, should be regarded as a constructive refusal to supply its delivery service.
This refusal to supply reconstruction aid to Yugoslavia whilst President Milosevic is still in power does, however, have to take account of certain realities.
Farland BV will run the network through two sets of agreements: the fibre leases agreements, under which the parties grant leases of certain dark fibre/wavelengths to Farland and the service agreements, by which Farland would lease back to firms that make up the joint venture's transmission capacity in a reconfigured form.The telecommunications firms that make up Farland have together asked the Commission to consider certain competition restraints over the fibre lease pacts: each agreement will only last for ten years; it will include a Most Favoured Nation clause; it stipulates that maintenance of the fibre will be carried out at market prices, and that the parties have a right of first refusal to supply Farland with further fibre pairs.
The City has the right of first refusal to supply the total.
Summary: TEHRAN (FNA)- Tehran lodged a complaint with the International Civil Aviation Organization (ICAO) over certain countries' refusal to supply fuel to Iranian passenger planes.
Energy Minister Shaikh replied that the situation regarding supply of gas was extremely unacceptable because of the federal government's refusal to supply sufficient gas to Sindh, which produced more than 70 per cent of the total gas in the country.
Doing so after the prematch drama of Nike's refusal to supply boots due to US sanctions only added to the occasion inside the Krestovsky Stadium.
IRAN coach Carlos Queiroz has demanded an apology from Nike over their refusal to supply boots to his squad.
The refusal to supply the S-300 air defense missile systems to Syria is not linked in any way with the recent visit by Israeli Prime Minister Benjamin Netanyahu to Moscow, acting Kremlin Spokesman Dmitry Peskov said on Friday,TASSreports.
Exclusivity contracts can also be an issue, particularly if they have punitive "refusal to supply" clauses in a market where few players can satisfy a customer's demand.