A new ACCC case on price maintenance for resale reminds us in due course that manufacturers and suppliers must exercise caution when it comes to distribution agreements with respect to prices in Australia. The Australian Competition and Consumer Commission (ACCC) has opened proceedings against FE Sports, (…) One of the most important details of a distribution agreement is whether it is exclusive or not. An exclusivity agreement grants the concessionaire the exclusive right to sell a particular item, operate in a specific territory or use a specific distribution channel. For example, a grocery store may have the right to be the only physical retailer to sell a certain type of cracker, but the product can still be sold online. A supplier may grant a distributor the exclusive right to be the only distributor in Los Angeles to transport its products, while other distributors may transport the product elsewhere. In business, and especially in luxury brands, it is common for exclusive distributors to be appointed by a manufacturer. On November 5, 2019, Novo Nordisk Sağlık Ürünleri Ticaret Ltd. Şti. (`Novo Nordisk`) has applied to the Turkish Competition Authority (`the Authority`) for negative clearance or an individual exemption for a subcontracting agreement with Abdi İbrahim İlaç San. Ve Tic.
A.Ş. («Abdi İbrahim»), (…) When a company makes a product, it needs it to reach its customers. Sometimes this means selling and marketing the product directly, but not all companies have the know-how or market presence to do it themselves, so they need to work with a distributor who has experience and a foot in the target market. A distribution agreement defines the terms of an agreement between these two parties that allows the distributor to sell and market the supplier`s products. In the case of intensive distribution, the manufacturer will use more than one channel to distribute its products. A remarkable feature of exclusive distributors is that they are financially able to have large quantities of the product in stock. For this reason, the product is readily available to wholesalers and retailers, which increases distribution. Since exclusive distributors usually have large sums to pay for the products, the manufacturer`s cash position is improved by distributors` payments for the storage of the product. Here is a checklist of factors to consider when creating a distribution agreement: Some distribution strategies involve the creation of an exclusive territory where the exclusive distributor is allowed to sell the product.
Retailers, such as retailers or value-added resellers (VARs), buy products from distributors, which they then sell to their end customers. In the dealer-dealer relationship, the distributor acts as an intermediary between a supplier supplier and the dealers. This relationship requires a contractual agreement other than that described above. Following General Motors` decision to cease marketing new vehicles in Western Europe for one of the group`s brands, the French importer of the brand in question informed its affiliated dealers on 11 December of the termination of their distribution and contract agreements with authorised repairers (…) The advantages of an exclusive retailer or distributor are as follows: FTC again accuses Endo and Impax of illegally preventing competition in the United States. ER* Oxymorphone Market FTC sues Endo Pharmaceuticals Inc., Endo International plc, Impax Laboratories, LLC and Impax owner Amneal Pharmaceuticals, Inc., claiming that an agreement between Endo and (…) One of the latest cases to emerge from the European Commission`s investigation into the e-commerce sector has come to a conclusion. On the 20th. In January 2021, the Directorate General of Competition fined Valve Corporation, owner of the Steam game distribution platform and five PC video games (…) Nicolas Feuillatte Champagne and two importers-traders fined for maintaining exclusive import agreements in the French West Indies* Background According to a report by the French Directorate-General for Competition Policy, Consumer Protection and the Fight against Fraud (DGCCRF), the French Authority (…) Case 2 illustrates the practices of an electronics manufacturer that organizes its distribution network and is interested in e-commerce to sell its products. The case was investigated under the competition laws of the EU, France, Germany, the US and Japan. .
