Problem
Abuse of dominant market position in international trade
Nature:
Anti-competitive and restrictive practices of market-dominant manufactures may include exclusive purchasing and dealing arrangements. Dealers who would sell one manufacturers' products on an exclusive basis may be offered higher margins, free training or other services, and thereby distribution outlets for competitive products may be restricted. Exclusive purchasing arrangements may restrict access to supplies by other manufacturers. Tying arrangements may also be employed, requiring dealers to purchase supplies, replacement parts or services exclusively from manufacturers entering into these agreements.
Incidence:
In high technology industries, an introduction of a new product offers a stimulus to manufacture of supplies for it or replacement or add-on parts. A leading manufacturer may wish to dominate this secondary market as well, and may withhold technical information and product introduction schedules, as in the information processing, communications and automobile manufacturing industries.
Broader Problems:
DominationAbuse of economic powerIrresponsible international trade Subject(s):
Commerce → MarketCommerce → Trade
Societal Problems → Maltreatment
Problem Type:
D: Detailed problems Date of last update
04.10.2020 – 22:48 CEST