I. Introduction Vertical restraints are largely scrutinized under a less strict standard of review as compared to horizontal restraints – especially in relation to naked price-fixing or market division. Since the US Supreme Court held in the watershed decision of 1977, Continental TV v. GTE Sylvania, that vertical restraints are not illegal per se notwithstanding reduction of intra-brand competition so far as the inter-brand competition is sufficiently robust, many countries have embraced its findings. It is also true that the economic theories have firmly supported the 1977 decision. Nevertheless, each jurisdiction has a different stance as vertical restraints inherently reduce intra-brand competition. The US antitrust law is primarily concerned about inter-brand competition as
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The South Korean FTC finds that the territorial restraints clauses contained in the distribution agreements of a liquor manufacturer are illegal since they suppress intra-brand competition among the wholesale distributors (Kook Soon Dang)
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