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Exclusive Contracts

Exclusive contracts, also known as exclusive dealing within the context of antitrust, involve arrangements between an upstream supplier and downstream customer (manufacturer and supplier, manufacturer and dealer, or manufacturer and end customer), where there is an agreement to only purchase products from one seller. In some circumstances, exclusive contracts can be beneficial and promote competition in the market by ensuring supply sources and creating dealer loyalty. However, when a firm has monopoly power, questions arise as to whether its use of exclusive contracts creates barriers to entry, i.e., entering firms cannot gain the inputs needed to compete with the monopolist. Our experts also have experience evaluating the extent to which the exclusive contract may foreclose competitors from accessing important customers or distribution channels, potentially leading to anti-competitive outcomes.

Clients rely on Econ One’s antitrust experts for their ability to assess the impact of exclusive contracts and deliver comprehensive expert reports and expert testimony before courts and regulatory agencies. Econ One’s antitrust economists have experience analyzing exclusive dealing arrangements and assessing the impact of anti-competitive agreements. Utilizing cutting-edge econometric models and data analysis techniques, our experts examine pricing patterns, market structures, and other important information to assess the impact of an exclusive contract and whether the exclusive agreement resulted in any economic harm. Econ One’s deep understanding of economic theory paired with the capability to analyze large amounts of data, result in Econ One being a trusted partner in navigating the complexities of exclusive contracts and exclusive dealing.