Originally Posted by jonmorris:
“Exclusivity contracts are irrelevant here. If Apple only wanted to sell via certain people, that's fine. But what if one of those companies decided to discount? Would they be allowed, or find that suddenly they're cut off?
There are laws to protect businesses. Not quite the same as consumer law, but still aiming to stop this practice. But companies are usually one step ahead (just look at the recent press around the Panama Papers!).”
Before anyone jump down my throat, this isn't about Apple - its a genuine interest in how this stuff works.
For example, it seems a fine line to me. If, say, I make my hotdogs, and I value them at X.
I supply them to Cineworld and Odeon, on the understanding that they are valued at X.
But then Cineworld start selling them at Y, as a loss leader, and I feel that as this is an artificially low price for my excellent hot dogs, which undermines the value proposition of my brand, am I not within my rights to stop supplying them to Cineworld, and agreeing an exclusivity deal with Odeon?
Basically, if a company is free to sell via certain people, why can't the price those people wish to sell the product for be a valid factor in the decision?