refusal to supply

refusal to supply

a business practice whereby a supplier acts to cut off supplies of his product to a distributor, either because the distributor has been found to be unsatisfactory in handling the product (i.e. failing to meet the terms of his CONTRACT), or as a means of coercing the distributor to accept such practices as EXCLUSIVE DEALING AND TIE-IN SALES. In the UK, a refusal to supply which is suspected of having detrimental effects on competition can be investigated by the OFFICE OF FAIR TRADING and the COMPETITION COMMISSION:

refusal to supply

a type of ANTICOMPETITIVE PRACTICE/RESTRICTIVE TRADE PRACTICE whereby a seller deliberately withholds supplies to customers as a means of enforcing EXCLUSIVE DEALING, TIE-IN SALES, FULL-LINE FORCING and RESALE PRICE MAINTENANCE. Under the COMPETITION ACT 1980, a refusal to supply can be investigated by the OFFICE OF FAIR TRADING and (if necessary) by the COMPETITION COMMISSION and prohibited if found to unduly restrict competition. See COMPETITION POLICY.