Exclusivity in High-Tech Industries: Evidence from the French Case

Posted by D. Daniel Sokol

Patrice Bougette, University of Nice-Sophia Antipolis - Law, Economics, and Management Research Group (GREDEG CNRS), LAMETA CNRS, Frederic M Marty, Research Group on Law, Economics and Management (UMR CNRS 7321 GREDEG), Julien Pillot, Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG) and Patrice Reis, Law, Economics, and Management Research Group discuss Exclusivity in High-Tech Industries: Evidence from the French Case.

ABSTRACT: The iPhone exclusivity deal illustrates the complex issue of exclusive arrangements in high-tech industries. Previous law cases on broadcasting right restrictions also highlighted the risk of anticompetitive foreclosure through such contractual clauses. This paper questions the French competition authorities’ decisions in the light of economic analysis. If such exclusive agreements foster incentives to invest and innovate, they may also be considered as exclusionary practices.