Tying Agreements

Tying agreements occur when a seller requires a customer to buy a second product or service as a condition for purchasing a primary product. For example, a company might only sell a printer if the customer also agrees to buy their specific brand of ink. Such arrangements can be unfair if they limit competition or harm other businesses, especially if the seller has significant market power. Regulatory authorities often scrutinize tying agreements to ensure they do not violate antitrust laws and protect fair competition.