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Reviewing Exclusivity in Distribution Agreements

Commercial practices should be evaluated both for profitability and compliance with competition law. Exclusive distribution can affect market access differently depending on market power and commercial conditions.

What to keep in mind

Assess duration, territory, switching options, supplier and distributor positions and potential exclusionary effects.

A clause cannot be declared lawful or unlawful merely because it is called exclusive.

Distinctions often confused

Vertical restrictions differ from agreements between direct competitors.

Frequently asked questions

Are exclusive distribution contracts forbidden?
Not automatically; competitive effects and applicable law determine the analysis.
Should exclusivity extend to every product and territory?
Only where justified and legally appropriate.

Informational content. It is not a substitute for professional advice.