33.
Exclusive dealing (Amended,
2001)
(1)
For the purposes of this section-
"exclusive
dealing" means-
(a)
any practice whereby a supplier of goods, as a
condition of supplying the goods to a customer
requires that customer to-
(i)
deal only or primarily in goods supplied by or designated by the
supplier or his nominee; or
(ii)
refrain from dealing in a specified class or kind of goods except
as supplied by the supplier or his nominee; and
(b)
any practice whereby a supplier of goods induces a customer
to meet a condition referred to in sub-paragraph (a) by offering
to supply the goods to the customer on more favourable terms
or conditions if the customer agrees to meet that condition;
"market
restriction" means any practice whereby a supplier
of goods, as a condition of supplying the goods to a customer,
requires that customer to supply any goods only in a defined
market, or exacts a penalty of any kind from the customer
if he supplies any goods outside a defined market;
"Tied
selling" means-
(a)
any practice whereby a supplier of an article, as a condition
of supplying the article (in this section referred to as the "tied
article") to a customer, requires the customer to-
(i)
acquire any other article from the supplier or his nominee;
(ii)
refrain from using or distributing, in conjunction with the
tied article, another article that is not of a brand or manufacture
designated by the supplier or the nominee; and
(b)
any practice whereby a supplier of an article induces a customer
to meet a condition set out in paragraph (a) by offering to supply
the tied article to the customer on more favourable terms or conditions
if the customer agrees to meet that condition.
(2)
Where on investigation the Commission finds that an enterprise
is engaging in tied selling, the Commission shall prohibit that
enterprise from so doing.
(3)
Where on investigation the Commission finds that exclusive dealing
or market restriction, because it is engaged in by a major supplier
of goods in a market or because it is widespread in a market,
is likely to-
(a)
impede entry into or expansion of an enterprise in the market;
(b)
impede introduction of goods into or expansion of sales of goods
in the market; or
(c)
have any other exclusionary effect in the market,
with
the result that competition is or is likely to be lessened substantially,
the Commission may prohibit that supplier from continuing to
engage in market restriction or exclusive dealing and to take
such other action as, in the Commissions opinion, is necessary
to restore or stimulate competition in relation to the goods.
(4)
The Commission shall not take action under this section where,
in its opinion exclusive dealing or market restriction is or will
be engaged in only for a reasonable period of time to facilitate
entry of a new supplier of goods into a market or of new goods
into a market and this section shall not apply in respect of exclusive
dealing or market restriction between or among interconnected
companies.
