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Contract clauses that might make you a monopolist

by on 2013-03-28

[Last reviewed May 2014]
If your company has significant market share, and you put certain provisions in your contracts, you might be risking having a court (or the FTC or the Justice Department) conclude that you’re engaging in “exclusionary conduct” and thus monopolizing or attempting to monopolize your market, in violation of the antitrust laws (specifically the Sherman Act). Vinson & Elkins lawyers Alden L. Atkins, James A. Reeder Jr. and Nicholas N. Shum go into this in What Companies Don’t Know Can Hurt Them: Monopolization Offenses. Some examples from part III of the article:

  • Exclusive dealing
  • Tying the sale of one product or service to another
  • “Loyalty” discounts
  • “Bundled” pricing
  • Most-favored-nation clauses

Read it all.

See also (list is generated automatically):

  1. Outsourcing contracts: Six suggested clauses In researching something, I happened upon an article in CIO Magazine from March 2007: "Outsourcing Contracts: Clause Control," by Stephanie Overby. The article talks about...
  2. Outsourcing contracts: Six suggested clauses In researching something, I happened upon an article in CIO Magazine from March 2007: "Outsourcing Contracts: Clause Control," by Stephanie Overby. The article talks about...
  3. Six contract clauses to help prevent lawsuits Business relationships can be fragile things. When drafting a contract, it can be useful to include six specific provisions to help cultivate a good working...
  4. When you can’t just say no in a contract: Three creative compromises Companies often don’t have the bargaining power to get their way in contract negotiations. When that’s the case, they have to think of other ways...
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