Anticompetitive Distribution Practices
Vertical across-brand restraints: see above for details
- Restraints on competition between sellers of different brands
- Types of restraint: tying, exclusive dealing, conditional pricing practices, anti-steering
- Example: McDonald's franchisees cannot sell competing food
- Focus on exclusionary effects (exception for the per se test for tying under S1/C3)
Vertical within-brand restraints: this section
- Restraints on competition between sellers of the same brand
- Types of restraints: price, geography, advertising, sales, credit
- Example: McDonald's franchisees required to provide standard offerings (menu, appearance of workers and store, price, location, customer service)
- Possibility of collusive or exclusionary effects (although there is a strong presumption of legality)