What Are Distribution Agreements

The health crisis and its consequences have had a direct impact on the trade agreements that have just been signed by 2020 between distributors and the food companies that supply them. This situation has led suppliers to think about the various legal mechanisms that (…) On 16 March 2020, the French Competition Authority (“FCA”) announced that it had fined Apple 1.1 billion euros, the highest ever imposed on a company for entering into vertical agreements with some of its distributors and for economic dependence on its independents (…) Companies active in this type of cross-border activity need well-structured international distribution agreements. Exclusive distribution: In an exclusive distribution agreement, the supplier undertakes to sell its products to only one distributor for resale in a specific territory. At the same time, the distributor is generally limited in its active sale in other areas (exclusively allocated). Potential competitive risks include reduced intra-brand competition and market lockdown, which can facilitate price discrimination. If most or all suppliers apply exclusive distribution, this can soften competition and facilitate agreements at both supplier and distributor level. Finally, exclusive distribution can lead to the closure of other distributors and, therefore, to hinder competition at this level. Distribution agreements may be considered exclusive or non-exclusive. In addition to writing custom agreements for customers, we offer downloadable model versions of both types: A developer distribution contract often involves the creation of software and the intellectual property of this software.

The agreement, which is a contract between the developer of an application and the company that markets the application, allows the developer to offer end-users or consumers a license to use its software. Some companies that own apps are large companies like Google, although even small businesses and even individuals create and distribute applications. The Competition Council launches the Guide to Vertical Agreements – The Competition Council has developed the “Guide to Vertical Agreements” to support companies that, on a case-by-case basis, must assess the compatibility of vertical agreements (…) The distribution contract defines the terms of the agreement, including the cost of the goods or the commission rate, the duration of the contract during which the distributor can operate and other important details. Selective distribution is the case when the supplier designates a distributor under a “selective distribution system” in which it appoints additional distributors only if they meet certain criteria.