Quote:
Originally Posted by jj20x
The whole point of the free market is that there are no restrictions on supply. If supply is restricted, the market isn't free and the government should step in to ensure a free market is restored. The restraint to trade is the exclusivity clause in the contract, effectively forming a cartel to control supply, availability and price of the product. Prior to the exclusive agreement with Sky, HBO content was available "on-demand" on Virgin Media.
Your argument that other channels are available and other drama etc is available doesn't apply to the example I gave, it didn't state that channels or drama programmes were being restricted but cited a specific product. The specific product having its supply restricted is HBO content. Clearly other petrol brands are available but the example I gave was of a cartel being formed by the fuel companies (plural) and Tesco, so the specific example there was petrol as a whole.
Obviously the size of the markets are different, but the example I gave is obviously a situation that wouldn't actually happen but was clearly intended to show cartels working in restraint of trade.
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Later tonight I'm planning to relax with a nice (to me) Jack Daniels over ice. This is one of many foreign products that are imported to the UK by British companies (in this case Diageo) who then do what they will with it so long as they have JDs permission. They reduce it's ABV to suit individual markets, they inject it into alcopops like Slate 20 etc.
Now, whilst I agree it wouldn't be in their best interests in the booze market for them to do this, there's absolutely no reason why Diageo couldn't withdraw JD from wholesale and sign an exclusive supply agreement with (say) Wetherspoons pubs.
Other bourbons would still remain available. But if you wanted JD, go to Wetherspoons.
Sky merely do the same thing, they import HBO content, repackage it as SA and flog it exclusively in their pub. Want it really, really badly? Go get it from their pub, it's available to you.