Exclusive Dealing | Practical Law

Exclusive Dealing | Practical Law

Exclusive Dealing

Exclusive Dealing

Practical Law Glossary Item w-007-8096 (Approx. 3 pages)

Glossary

Exclusive Dealing

An agreement between a buyer and a supplier requiring the buyer to purchase all or almost all of a particular product or service from the supplier for a set period of time. An exclusive dealing agreement prevents a buyer from using or reselling the products of a competing supplier. Exclusive dealing arrangements are usually considered procompetitive. However, they may violate antitrust laws if they harm competition (for example, by foreclosing a substantial portion of competing suppliers' distribution channels).
Exclusive dealing can be challenged under several antitrust statutes, including:
Both governmental agencies and private parties may bring exclusive dealing claims. Exclusive dealing arrangements are generally analyzed under the rule of reason.