Selective distribution definition

What does Selective distribution mean?

A system whereby only appointed distributors and retailers are permitted to purchase and resell the producer's goods.

Selective distribution agreements can limit intra-brand competition but are ordinarily only problematic when the producer has substantial market power (thus there is also limited inter-brand competition). Selective distribution systems based on qualitative criteria are acceptable but quantitative criteria coupled with market power may result in a breach of Article 101(1) TFEU and/or the Competition Act 1998, s 2.

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Selective distribution is referenced 1 in Encyclopaedia of Forms and Precedents

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