Glossary of competition terms

This Glossary was prepared by DG COMP and the OECD for non-competition specialists. Each term is enriched with references of national case laws from the e-Competitions Bulletin. (© European Union - © OECD)

Exclusive distribution

Distribution system, in which a company grants exclusive rights on its products or services to another company. The most common forms include single branding and/or exclusive territory rights, whereby a single distributor obtains the right to market a supplier’s product in a specific territory. The supplier’s purpose in granting exclusivity is normally to provide the distributor with incentives to promote the product and provide better service to customers. In most cases, the distributor’s market power is limited by inter-brand competition.

© European Commission