6 November 2024
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The Pitfalls of Selective Distribution: Lessons from the CAT's Judgment in Up & Running vs Deckers

To The Point
(5 min read)

In a recent judgment, the Competition Appeal Tribunal (CAT) ruled that a manufacturer's refusal (under the terms and conditions of its selective distribution system (SDS)) to allow an authorised retailer to sell branded running shoes on its anonymised second website, amounted to an object infringement of competition law. The anonymised website was intended as a channel for discounting unsold and out-of-season stock accumulated by the retailer during the COVID-19 pandemic.

While the case turned on its specific facts, it raises important practical implications for both brands operating SDS distribution models in the UK and their retail partners alike. It highlights the challenges of selective distribution systems, particularly around ensuring criteria are well-designed and consistently applied.

Background
Legal framework
The CAT's findings
Key Takeaways

Next steps

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