PowerPoint demonstration 10 - ExclusiveDealing

Julie identifies the issue of Exclusive Dealings in competition law. Executive Dealing engages two types of vertical transactions: 1. “Supplying (or acquiring) goods or services on conditions relating to their acquisitions or supply, or conditions relating to other goods or services”. 2. “Refusing to supply or acquire for specified reasons, fox example because a person you are supplying to will not agree to the specific restrictions put in place”. Exclusive Dealing (ED) defined: ""Subject to this section, a corporation shall not, in trade or commerce engages in practices of exclusively dealing"". Prohibitions Section 47 (2) Supply on condition as to re-supply. The solus agreements consist of: “Supply on condition customer will not acquire like goods or services from another supplier”. This is habitually utilized by suppliers: 1. defends market share, 2. stabilises the market, 3. decrease promotional expenses, 4. Assists enthusiasm for product, 5. Protection from competitors benefitting. Full Line forcing includes: Supplying goods or services on condition customer will not acquire different goods or services. Supplier’s refusal to deal section 47(3) must not refuse to deal for reason that other person will not agree to certain restrictions.