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GLOSSARY

Refusal to supply/license definition

Published by a LexisNexis Competition expert

What does Refusal to supply/license mean?

A dominant firm's refusal to supply products, provide access or to license its intellectual property rights to other firms (sometimes including its competitors) may amount to an abuse of a dominant position, particularly where the refusal amounts to a foreclosure of a downstream market.

Compulsory dealing is an exception to the general freedom of contract principle that operates in market economies, but is viewed as necessary in some instances in order to preserve competition and prevent anti-competitive effects. In limited circumstances a refusal to supply/license, coupled with the absence of objective justification, can amount to a breach of Article 102 TFEU and/or the Competition Act 1998, s 18.

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