Application by Chibuku Products Limited for authorization of an Exclusive Dealing Arrangement

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On 5^th May, 2014, the Commission received an application from Chibuku Products Limited (CPL) for authorization of an Exclusive Dealing Arrangement for its products. The Commission reviewed the application and found that although the arrangement would likely result in restricting competition in wholesaling of CPL’s products, there were some identifiable benefits to consumers from the arrangement.

The benefits included ensuring adequate availability of CPL products even to the most remote locations; ensuring that standards are maintained since it would be relatively easier to monitor; and ensuring that CPL’s products are available at reasonable prices across the country.

 

The exclusive dealing arrangement was approved during the 39^th sitting of the Commission (held on 4^th August, 2014) with a recommendation, among others, to amend the Distribution Agreement so that it did not require distributors not to be involved in distribution of competitors’ products even if it is in another location since such clause foreclosed market outlets for competing goods.

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