How will the Commission ensure competition in markets which are highly concentrated?
When a majority of the main suppliers in a market have selective distribution systems, the loss of competition at the distribution level can be significant, and it is possible that certain types of distributors could be excluded from the market, as well as there being an increased risk of collusion between these main suppliers. Exclusion (or foreclosure) of potentially more efficient distributors is a risk with selective distribution systems, because these systems allow suppliers to restrict sales by their authorised dealers to non-authorised dealers, thus preventing non-authorised dealers from obtaining supplies. Pressure by different distribution formats such as price discounters or cheaper online-only distributors is good for competition. Foreclosure of such distribution formats could result either from the cumulative application of selective distribution in a market (the main suppliers all having selective distribution systems) or from the actions of a single supplier with a market
