Exclusive Dealing Arrangements and Anticompetitive Concerns

Summary

This practice note discusses the antitrust risks that can arise from exclusive dealing arrangements. The antitrust laws generally permit upstream companies the freedom to deal with downstream distributors as they see fit. It is common for businesses to impose some form of limitation on the supply of a product or service, or to deal with customers or suppliers only on certain conditions. Antitrust problems can arise, however, when such an arrangement forecloses competitors from a significant share of the market without sufficient procompetitive justifications.