The Impact of E-commerce on Selective Distribution Systems

Research Paper (undergraduate) from the year 2018 in the subject Economy - Theory of Competition, Competition Policy, grade: A+, University of the West Indies, course: Bachelors of Law, language: English, abstract: Due to the rapid and consistent progression and development of information technology and computer science, widespread use of the internet has catapulted internet sales and e-commerce. E-commerce brings with it many pros and cons. In addition, it significantly affects agreements between the various players of competition law. This research paper seeks to analyse the impact of e-commerce on vertical agreements, particularly, selective distribution agreements. Vertical agreements are agreements which are entered into by undertakings or firms which operate at different levels of the market. Selective distribution systems are a type of vertical agreement within which a supplier sells goods or services to distributors who are obliged to sell these goods or services based on specific criteria. Throughout this paper, the repercussions of e-commerce which are experienced by manufacturers, distributors and consumers will be examined in order to determine the role and effect of e-commerce on selective distribution systems. There will also be critical examination of the rules governing vertical agreements in the European Union and an assessment of their appropriateness and applicability. The pertinency of the aforementioned rules will be discussed and recommendations will be made accordingly. Both primary and secondary sources are to be utilized in the execution of this research paper. Through a critical examination of such materials, there will be thorough analysis of the primary focus of this paper, the impact of e-commerce on selective distribution systems.