A foreclosure is said to be market Page 3 3 distorting if it likely hinders the maintenance of the degree of competition that is still present in the market or the growth of that competition and thus has a likely effect that.
Foreclosure is defined as denying actual or potential competitors profitable access to a market.
In contrast, post-merger, downstream- or customer foreclosure occurs when the downstream firm purchases only inputs from the combined firms' upstream divisions. However, input foreclosure is generally regarded as more damaging than customer foreclosure.
In competition law, agreements between businesses at different points in the production or distribution chain (such as those between manufacturers and their customers or distributors) are referred to as "vertical agreements."
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