Exclusive Dealing: Indian Experience

Abstract

In their attempt to increase sales, profit, and market power, manufacturers and suppliers often resort to certain marketing practices which limit the freedom of distributors and restrict competition in the market. One such restrictive trade practice is exclusive dealing, whereby the manufacturer or supplier requires the distributor to exclusively deal in the goods manufactured or supplied by the former. This paper seeks to analyse and evaluate the statutory provisions for regulation of exclusive dealing and the attempt of the MRTP Commission to curb exclusive dealing. An attempt has been made to ascertain the current thinking of the M RTP Commission and the Supreme Court on exclusive dealing.