Relationship marketing at a crossroads with competition rules: the case of distribution agreements

As the European economies have evolved to a more open and competitive model, the strict rules on distribution have been increasingly criticised for an antibusiness bias. There is a fierce debate among economists as to the anticompetitive effects of distribution agreements that limit the right of wholesalers and retailers to market and sell a manufacturer's output. Relationships with suppliers have been mooted as an effective method for reducing the impact of competition on an industry. Companies that develop an intense marketing relationship should consider their joint actions' potential to encourage or restrict competition. Assessment of particular competition decisions, how these are made and the wider implications of such judgements with adverse effects on companies or consumers is required to both develop greater awareness of competition law and to reduce future abuses. The paper analyses the collaborative agreement between Volkswagen and German dealers, a case star in the EU jurisprudence, where the ...