Exclusive distribution definition

What does Exclusive distribution mean?

Exclusive distribution is where an organisation grants exclusive rights on its services or goods to another organisation, for example, the right to exclusive territory.

Where a company or organisation controls a share of the market, a distributor may be allocated a territory within which only that distributor can actively market itself as the distributor of the supplier's goods often with a view to protecting the reputation surrounding a brand. This is permissible at common law but competition law may prevent some restrictions of an otherwise free market, and while it is up to the parties to consider whether their arrangement complies with competition law or falls within a block arrangement for their product. UK and EU laws are enforced by the Competition and Markets Authority (CMA).

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Exclusive distribution is referenced 1 in Halsbury's Laws of England

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