Competition Corner

“Most Favored Nation” provisions have increasingly drawn the attention of both government enforcement agencies and the business community. Notably, recent litigation involving the use of MFN provisions by Valve Corporation in connection with its popular PC-gaming platform, Steam, has spotlighted this increased government scrutiny. Additionally, a number of lawsuits targeting the use of MFN provisions by technology giants like Amazon and Apple indicate that the government is taking a closer look at the use of these provisions. While most businesses have nothing to fear from contracts containing MFN provisions, companies should be aware that there are certain circumstances that may give rise to antitrust scrutiny.

On May 25, the Attorney General for the District of Columbia filed a complaint in the District’s Superior Court against Amazon.com, Inc., targeting the Most Favored Nation clauses agreed to as part of the contracts between Amazon and at least some sellers that use Amazon’s platform.

As part of an ongoing effort by the Japanese government to promote economic growth through open innovation, late last year, the Japan Fair Trade Commission (JFTC) and Ministry of Economy, Trade and Industry (METI) jointly released draft Guidelines on Business Collaborations with Startups.

When can a company’s arrangements with its suppliers or customers create trouble? In this episode of Winston & Strawn's Competition Corner Podcast, Antitrust Partner Susannah Torpey discusses vertical restraints to help companies better understand where agreements or understandings undertaken at different levels of production, distribution, or supply may raise antitrust concerns.