Exclusive-Supply Contracts
Exclusive-Supply Contracts
This chapter describes the traditional approaches to exclusive supply contracts taken in the United States and in the European Union, identifying similarities and differences. It examines evolutionary changes in the U.S. approach from a simple “substantial share” test to measure foreclosure to more recent concern with the effects of exclusive contracts in enlarging market power. It describes contemporary developments in applying the monopolization clause to exclusive supply arrangements. It also explores potential policy divergence between the European Commission and the European courts in dealing with exclusive supply contracts Finally, the chapter assesses the relevance of economic models (including post-Chicago models dealing with collective-action issues) to legal policy on this issue.
Keywords: substantial share, foreclosure, post-Chicago, collective action
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