In competition law, exclusive dealing refers to when a retailer or wholesaler is ‘tied’ to purchase from a supplier on the understanding that no other distributor will be appointed or receive supplies in a given area. When the sales outlets are owned by the supplier, exclusive dealing is because of vertical integration, where the outlets are independent exclusive dealing is illegal (in the US) due to the Restrictive Trade Practices Act, however, if it is registered and approved it is allowed.
Exclusive dealing can be a barrier to entry.
One form of exclusive dealing – known as third line forcing – is prohibited per se, meaning that it is prohibited no matter what its effect on competition.
Third line forcing involves the supply of goods or services on condition that the purchaser acquires goods or services from a particular third party, or a refusal to supply because the purchaser will not agree to that condition.
Read more about Exclusive Dealing: Examples of Exclusive Dealing
Famous quotes containing the words exclusive and/or dealing:
“It’s no good being exclusive if nobody wants in.”
—Mason Cooley (b. 1927)
“They [women] can use their abilities to support each other, even as they develop more effective and appropriate ways of dealing with power.... Women do not need to diminish other women ... [they] need the power to advance their own development, but they do not “need” the power to limit the development of others.”
—Jean Baker Miller (20th century)