Territorial Restrictions And Potential Antitrust Liability

The use of vertical restraints and their anticompetitive effect on competition between companies has demonstrated that their use should not be permitted. One such vertical arrangement would be customer and territorial restrictions. Customer and territorial restrictions have an effect on the flow of electronic commerce because these types of arrangements influence the manner in which the buyer may resell these goods. Whether or not these types of arrangements are analyzed under rule of reason or the per se analysis was one of contention.

The following questions have been addressed in this article:

Is interbrand or intrabrand competition more important in determining whether competitive practices are being upheld?
What about goods that are consigned?
How can a manufacturer successfully defend these allegations?

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