Competition law refusal to deal

  • 1 A constructive refusal to deal is when a supplier offers to do business on such unrealistic terms that it is tantamount to a refusal to deal.
  • What is an example of a refusal to deal?

    Examples: A grocery store refusing to stock a particular brand of cereal because they have had issues with the supplier's delivery in the past.
    A clothing retailer deciding not to carry a certain brand of clothing because they do not align with the store's values or target market..

  • What is an example of refuse to deal?

    In most cases, businesses have the right to decide who they do business with.
    For example, a vendor may decide that delivery costs are too high to make it profitable to sell to a particular business.
    Or they may question the reliability or credit worthiness of a particular business.Jan 20, 2022.

  • What is refusal to deal competition?

    Under Article 102 of the TFUE, refusal to deal as an act of abuse of a dominance position involves two markets in one of which an undertaking with a dominant position creates or threatens to impose restrictions to competition in the other market unjustifiably..

  • What is the meaning of refusal to deal?

    "Refusal to deal" includes any agreement which restricts, or is likely to restrict, by any method the persons or classes of persons to whom goods are sold or from whom goods are bought. — The Competition Act, 2002 (India) S4-d..

  • Firms may refuse to supply for all sorts of legitimate business reasons, e.g., non-payment for goods, unauthorised altering of goods, non-compliance with the firm's criteria for selective distribution, shortage of stocks, supply has been disrupted, etc.
The rationale to justify this refusal is evaluated in a case-by-case basis. Commentary. Refuse to deal is not per se illegal since undertakings have in 

Can a company refuse to supply a competitor?

The U.K.
Office of Fair Trading indicated that while dealing with firms that are not rivals or potential rivals by an undertaking refusing to supply another competitor is generally irrelevant as a matter of law, it may be considered, as a non- decisive factor, in determining strategic motives. 65Russia, Slovak Republic, Turkey. 17 .

Can a firm refuse to deal with another company?

A firm's refusal to deal with any other person or company is lawful so long as the refusal is not the product of an anticompetitive agreement with other firms or part of a predatory or exclusionary strategy to acquire or maintain a monopoly.
This principle was laid out by the Supreme Court more than 85 years ago:.

Is a refusal to deal a competition law violation?

During the last ten years, a competition law violation based on a refusal to deal or margin squeeze theory was found in approximately 150 cases in the reporting jurisdictions, and no violation was found in at least twice as many investigations.
The survey posed several questions on the policy considerations concerning refusals to deal.

Is a refusal to deal anticompetitive?

No agency indicated that a prior supply relationship between trading partners is necessary to establish that a refusal to deal is anticompetitive.
Nevertheless, many responses specified that prior dealing is relevant to their evaluation.


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