ABSTRACT
Selective distribution systems indirectly, and exclusive distribution systems directly, impose some form of restraint on the free flow of trade. For instance, in the most extreme case of an agreement creating an absolute territorial protection in favour of a distributor of a branded product, no possibility exists for any trade in that product, from other countries, into the restricted territory. This is particularly objectionable in the Community context given the overriding goal of market integration in the application of Community competition law. Indeed, the Community has attempted to strike a balance between the pro-competitive effects of vertical restraints and limitations on cross-border trade necessitated by distribution agreements.
