2 ms·
> I don't understand why suppliers cutting off supplies to retailers is anti-competitive in this case. It's about intent and effect. Resale price maintenance i
by jdietrich 8y ago
> I don't understand why suppliers cutting off supplies to retailers is anti-competitive in this case.
It's about intent and effect. Resale price maintenance isn't illegal per se, but it can become illegal if it is intended to stifle competition to an unreasonable extent.
Manufacturers are within their rights to choose distribution and retail partners, but those rights aren't unconditional. They can't coerce retailers in ways that are detrimental to competition and the proper functioning of the market. I can refuse to supply a retailer because they provide inadequate customer support or they don't order enough product for it to be worth my while, but I can't refuse to supply a retailer with the specific intention of stifling competition.
For the corollary in US law, see:
https://en.wikipedia.org/wiki/Rule_of_reason https://en.wikipedia.org/wiki/Rule_of_reason