Question
What does the term "tie-in arrangement" refer to in the
context of agreements involving the purchase of goods or services?Solution
Section 3 Anti-competitive agreements: (4) Any other agreement amongst enterprises or persons including but not restricted to agreement amongst enterprises or persons at different stages or levels of the production chain in different markets, in respect of production, supply, distribution, storage, sale or price of, or trade in goods or provision of services, including- (a) tie-in arrangement; (b) exclusive dealing agreement; (c) exclusive distribution agreement; (d) refusal to deal; (e) resale price maintenance, shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely to cause an appreciable adverse effect on competition in India. Provided that nothing contained in this sub-section shall apply to an agreement entered into between an enterprise and an end consumer. Explanation.--For the purposes of this sub-section,-- (a) "tie-in arrangement" includes any agreement requiring a purchaser of goods or services, as a condition of such purchase, to purchase some other distinct goods or services.
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