Anti-trust Restrictions On Exclusive Distribution Behavior And Influence

Exclusive dealings is considered part of vertical restraints in the field of Law and Economics, it is defined as the collaboration of producers and resellers. The issues involved with such deals often include retail price maintenance, division of territory and clientele, bundling and other various actions that may disrupt normal market competition. Case studies are available from all over the world.Scholars have analyzed the effects of such behavior from the scope of economics, law, sociology, and business management to investigate its origin and effect on the market.Vertical restraint agreements appear to defy anti-monopoly efforts and appear to be prevalent in countries with strong anti-monopoly law is most likely the result of the balance between law enforcement cost, commercial efficiency, and consumer surplus. Foreign countries have developed a series of exceptions to deal with such issues, most notably the Vertical Agreements Block Exemption of the European Union. China can learn from foreign experiences while enforcing the newly enacted anti-monopoly law while adapting to their own needs.Exclusive deals are a corporate alliance between producers and resellers. As part of the modern marketing system it seems to provide consumers better goods by lowering costs. On the other hand, its exclusiveness might stifle competition, and may trigger cartel effects. The contractual legality and the associated consequences also come under question from law enforcement and the market.This article will analyze EU, German, and US anti-monopoly law development and case studies in consideration of economic efficiencies regarding the effect of anti-monopoly regulation on exclusive dealings.