LAW & ECONOMY : INTERNET DISTRIBUTION - ONLINE SALES - PRO-COMPETITIVE EFFECTS - POSITIVE EXTERNALITIES - SELECTIVE DISTRIBUTION - INTEGRATED NETWORK - RESTRICTIONS - PURE PLAYERS

The restrictions on Internet distribution

This set of three papers is derived from the training session on the restrictions on Internet distribution organised by Concurrences Review that has held on 16th November 2010 in Paris. For Ms Lubek the current trade-off between the pro-competitive effects of Internet distribution and the protection of specific investments made by brick-and-mortar players remains an open issue so long the online sales are not a mature enough market. If positive externalities can be identified in the integrated network case, the case for exclusion of pure players from the selective distribution network is to be assessed with a look at competition -rather than competitors - protection. For Me Vogel, the restrictions on Internet distribution concern both restrictions initiated by distributors towards suppliers and those imposed by suppliers on distributors. The competition rules covering online sales by distributors are not entirely satisfactory. The regime advocated by the competition authorities focuses excessively on the freedom to sell online rather than taking into account the coherence of distribution networks and tackling the free-rider issue.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. The economic effects of Internet distribution Introductory remarks Anne PERROT Vice-Chairperson , Competition Authority 1. The retail sector in France is highly regulated, both in terms of market structures and player behaviour. This circumstance no doubt explains why e-commerce has brought many cases before the Competition Council at an early stage. The solutions that have been brought about by the commitments made by the suppliers in question are fairly close to what is set out in the European Commission guidelines adopted in April 2010. In addition to these first cases, mainly concerning the possibility to sell online for pure Internet players and

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Authors

  • Vogel & Vogel (Paris)
  • French General Inspectorate of Finance (Paris)
  • EKlub

Quotation

Joseph Vogel, Anne Perrot, Jeanne Lubek, The restrictions on Internet distribution, February 2011, Concurrences N° 1-2011, Art. N° 33880, www.concurrences.com

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