Glossary entry

English term or phrase:

refusals to supply customers

English answer:

a discussion between competitors where one agrees not to supply a particular customer - anti-competitive practice

Added to glossary by Charlesp
Feb 14, 2005 08:38
19 yrs ago
1 viewer *
English term

refusals to supply customers

English Bus/Financial Business/Commerce (general)
Hello all!
I am a bit uncertain about the meaning of "refusals to supply customers", therefore I'd appreciate any help from you.
Here's the context:
"In particular, discussing the following issues with competitors could constitute illegal anti-competitive practice:
- PRICING
- PRODUCT/SERVICE LAUNCHES
- SHARING’ OR ‘DIVIDING’ MARKETS
- ***REFUSALS TO SUPPLY CUSTOMERS***"

Thanks a lot!

Discussion

Non-ProZ.com Feb 14, 2005:
That was exactly my question. This is why I wanted to hear other opinions. It is a fragment from a code of ethics of a telecommunication company.
rangepost Feb 14, 2005:
Not serving a *supply customer*, or not supplying a customer? Are you talking about commercial customers?

Responses

+7
5 mins
Selected

a discussion between competitors where one agrees not to supply a particular customer so that...

they have less offers (less competition, ie higher price).

And exchange (for instance) maybe they agree to do a trade-off, each taking a particular customer and agreeing not to approach customers of the other.

anti-competitive practice
Peer comment(s):

agree Tony M : In the given context, this would be the way I would interpret it --- voluntarily refusing to supply, rather than the other interpretation of 'black-listing' (though that is still a possibility...)
10 mins
thanks for your "agree" - it feels like massive applause , but it was such a simple answer.
agree Deborah do Carmo : this is correct - the parties (competitiors) agree to refuse to supply certain customers//is if you have studied competition law like we (both probably) have but otherwise I could understand why someone may get confused//'cause u are right!.
19 mins
thanks for your "agree" - it feels like massive applause , but it was such a simple answer. - thanks for the addition. I wasn't criticizing the question at all, only overwhelmed at the number of agrees!
agree juvera
1 hr
thanks for your "agree" - it feels like massive applause , but it was such a simple answer.
agree Vita Merkulova
3 hrs
thanks for your "agree" - it feels like massive applause , but it was such a simple answer.
agree Java Cafe
5 hrs
thanks for your "agree" - it feels like massive applause , but it was such a simple answer.
agree humbird : Under the context it appears some type of conspiracy of price controlling on the competitors' side. If so this is correct understanding.
6 hrs
agree conejo
7 hrs
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks Charles! You've been very helpful. Cheers!"
-2
3 mins

black lists

Maybe it's about black lists that companies maintain. For instance, they may keep such lists of customers based on bad payment practices, probability of dual use,... and refuse to supply any product ( or a specififc product) to them. Discussing such things with competitors will not be a good thing to do, let them learn it the hard way!

--------------------------------------------------
Note added at 4 mins (2005-02-14 08:43:15 GMT)
--------------------------------------------------

You could consider the proz blue board system as a very good example of this, you will not normally provide services to agencies that have history of bad payments...
Peer comment(s):

agree Darya Kozak
3 mins
thanks!
disagree Deborah do Carmo : not in the context of antitrust or anti-competitive practices
20 mins
disagree George Thomson : Black-listing is usually done for good reason (non-payment etc) but does not apply here. In this case the customer has done no wrong so it should simply be: 'refusal to supply'
35 mins
disagree humbird : The way I understand is this practice is for price controlling thus illegal. Balck-listing is not.
6 hrs
Something went wrong...
Term search
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search