Tag Archives: most favored nation

Potential Antitrust Implications of Most Favored Nation Clauses

Both in the automotive and other industries, parties have turned to most favored nation (MFN) clauses—or clauses having the same effect—as a means to assure the lowest possible input costs. MFN clauses offer pro-competitive, cost-saving benefits including efficiencies in negotiations; buyers need not haggle for the last nickel in cost reduction when an MFN clause … Continue reading this entry

Most Favored Nation (“MFN”) Pricing Draws Scrutiny as Potential Anticompetitive Practice

An interesting and growing debate in the antitrust arena is whether most favored nation (“MFN”) pricing provisions are pro-competitive or anticompetitive. For many years, MFN provisions have been considered a fairly noncontroversial contract term included by purchasers in an attempt to assure that other buyers do not receive a more favorable price. But not all … Continue reading this entry