The Application of Article 85 of the EEC Treaty to Exclusive Distribution Agreements

Abstract

Compares the application of EEC competition laws and U.S. antitrust laws to exclusive distribution agreements, and noting an interesting development in the two systems. Article analyzes Continental T.V., Inc. v. GTE Sylvania Inc. and concludes it introduced the rule of reason to the U.S. approach for analyzing all nonprice vertical restrictions, but did not provide concrete guidelines for its application. The EEC approach, on the other hand, is designed to promote the goal of Common Market integration by preventing the insulation of national markets. Thus the Commission and the Court of Justice have developed a favorable attitude towards territorial and exclusive supply restrictions, but are stricter with regard to price and customer restrictions