This must be against competition laws?

[Dr House]

So here is the story, I want to open a new business in the uk, selling one specific food product, lets call it product X

My plan is to build a brand name with this product and open Kiosks / Concession Stands in several different shopping centers as I expand (if it works). The problem is that there is another company that as part of its product lineup sells a variant of Product X and they don’t want any competition so they have made a deal with the owners of the shopping centers to prevent them from leasing a space to anyone selling product X.

Can this really be allowed? I spoke to the OFT and they are not interested. Its not the end of the world if I cant open my business in a shopping center as I can try and find a good retail unit somewhere else but its not really the way I wanted to go at first.

 

[Greenlizard0]

No that's normal.

It's like a company wanting exclusive rights for something so they will strike a deal with the owners for it, in this case the shopping centre.

 

[TheCenturion]

Sorry, I can't be of much help. But I do have a question: are you quitting medicine?

 

[Energize]

Didn't Intel do something similar and get fined for it?

 

[Dr House]

Sorry, I can't be of much help. But I do have a question: are you quitting medicine?

Probably, I am going to give my self 2 years out. If I manage to make a success of myself outside of medicine I will quit for good as I don’t really enjoy working in the hospital however If things don’t work out I will just go back to the hospital.

I have a good business background, access to capital and a lot of connections so hopefully I will manage to find something over the next 2 years.

I have not made a final decision on anything yet but my wife loves her job so we will still have one Doctor in the family.

 

[Zefan]

Sounds pretty standard, they made a deal giving your rival exclusive rights to sell a particular product on their property.

 

[kwerk]

What kind of food is it? Baked potatoes?

 

[Morba]

The return of Slush Puppies?!

 

[J-FRO]

covered by articles 101 and 102 of the TFEU. Called a verticle agreement and as long as both businesses are established in the UK there's nothing as far as I can recall that says you can't do this. Exclusivity is ok, companies just have to be careful in order to ensure they don't completely block parallel trading.

 

[Dr House]

Sounds pretty standard, they made a deal giving your rival exclusive rights to sell a particular product on their property.

yep but the problem is that they have made such a deal in almost every major shopping centre in the uk and thus preventing consumers from having any choice.

Thanks for the info J-FRO.

btw you would be surprised how much the rent is on a 3mx3m stand, its upto 100k pa!! I dont know how the hell the AA stands and other small stands make money.

What kind of food is it? Baked potatoes?

Not potatoes, I know the guy that owned some sort baked potato chain he did not do well out of it.

 

[bsoltan]

You're going to have to sell a lot of Corn Dogs.

 

[[FnG]magnolia]

Your rival is not breaking any anti-competition laws nor is it distorting the market in any way. This is really common business practice I'm afraid.

What was the idea or can't you tell us? I'm guessing it's a pancake or doughnut place.

 

[arknor]

Not potatoes, I know the guy that owned some sort baked potato chain he did not do well out of it.

aye people want food they can eat easily and quickly on the move

 

[EdwardTeach]

Frozen yoghurt?

 

[Greenlizard0]

On second thoughts, can a person corner the market like this? I'm thinking of the recent ruling about that landlady who won her case against Sky. Thereby allowing her to subscribe to Greek tv to show Premier League games.

 

[ScarySquirrel]

Is it sausage on a stick? If not, it should be.

 

[K.C. Leblanc]

hat was the idea or can't you tell us? I'm guessing it's a pancake or doughnut place.

Hasn't Lysander got the pancake world stitched up?

 

[Morba]

They aren't stopping you selling your item, just restricting your access to the best places to sell.
That's not wrong of them.

 

[kwerk]

You know what would be good? A boiled egg stall.

 

[Raymond Lin]

They aren't stopping you selling your item, just restricting your access to the best places to sell.
That's not wrong of them.

This is pretty much it. A shopping centre is a private land, and as such, the owner has the right to refuse entry to anyone, or reserve the rights to lease the space to anyone specific.