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Vertical restraints and distribution

Exclusive supply, exclusive distribution, tie-in, resale-price maintenance and refusal to deal require market-context analysis rather than automatic condem

Finin2min summary

Exclusive supply, exclusive distribution, tie-in, resale-price maintenance and refusal to deal require market-context analysis rather than automatic condemnation.

Source review date: 4 July 2026. Read with the official text and the facts of the transaction.

Legal anchors

  • Section 3(4)
  • Section 19(3)
  • CCI decisional practice

How to analyse it

  1. Define products, channels and affected geography.
  2. Measure foreclosure and market power.
  3. Identify quality, investment and free-rider efficiencies.
  4. Avoid control over independent reseller prices.

Practical illustration

A premium brand recommends prices and funds marketing. Recommendation becomes risky if discounts are monitored and punished.

What can go wrong?

  • Minimum advertised price enforced as fixed resale price
  • Long exclusivity with powerful supplier
  • MFN clauses not reviewed for platform effects

Evidence pack

  • Distribution agreements
  • Discount policies
  • Market-share evidence
  • Efficiency memo

Decision workflow

  1. Freeze the facts and effective date.
  2. Identify the controlling Act, rule, notification, circular and jurisdictional overlay.
  3. Prepare a calculation or exposure note.
  4. Collect the evidence pack before filing, payment, signing or response.
  5. Record reviewer conclusion and assumptions.

Quick Q&A

Is the result automatic?

No. Define products, channels and affected geography.

What is the most important control?

Avoid control over independent reseller prices.

What should be escalated?

Minimum advertised price enforced as fixed resale price, especially where money, deadlines, enforcement, personal liability or irreversible transaction steps are involved.

Official source trail

Secondary commentary may help interpretation, but it is not the source of law.

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