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    Exclusivity Clauses in Commercial Contracts May Affect Constitutional Rights to Work, Freedom of Enterprise, and Free Competition.
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    Exclusivity Clauses in Commercial Contracts May Affect Constitutional Rights to Work, Freedom of Enterprise, and Free Competition.

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    The exclusivity clause present in commercial contracts creates an obligation not to do something on the part of one or both parties, which consists of renouncing the freedom to contract with subjects other than the counterparty to the contract, in order not to affect the proper performance of the tasks assumed by any of the parties to the contract. This clause is currently used very frequently because it offers great benefits to those who use it, such as speed in business, protection of investments, cost reduction, improvement of distribution networks, among others.

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    The exclusivity clause present in commercial contracts creates an obligation not to do something on the part of one or both parties, which consists of renouncing the freedom to contract with subjects other than the counterparty to the contract, in order not to affect the proper performance of the tasks assumed by any of the parties to the contract. This clause is currently used very frequently because it offers great benefits to those who use it, such as speed in business, protection of investments, cost reduction, improvement of distribution networks, among others.

    It is essential that companies using exclusivity clauses ensure that their use is carried out within certain temporal and special limits and that it does not have as its object or effect the monopolization of product distribution and/or restricting market access. In the event that an exclusivity clause is not within the established limits, it will be considered an abusive clause, as it produces an unjustified imbalance to the detriment of the consumer, and it will be ineffective by operation of law without the need for a judicial declaration, so it will have no effect.
    Furthermore, these exclusivity clauses are highly regulated in our legal system to prevent them from being abusive clauses because their improper use would lead to the deployment of monopolistic activities in the distribution of goods and services and even restrictions on market access for competitors, affecting constitutional rights such as the right to work, freedom of enterprise, and free competition. For this reason, the Constitutional Court, in Judgment C-535 of 1997, determined the scope of exclusivity agreements and their limits, establishing a prohibition on exclusivity clauses that have as their object or effect restricting competitors' access to the market or monopolizing the distribution of products or services.

    Likewise, it is imperative to mention that companies that make use of abusive exclusivity clauses will be committing acts of unfair competition and are exposed to all the sanctions contemplated in Colombian legislation for acts of unfair competition, such as the declaration of illegality of the acts of unfair competition, the duty to compensate for damages caused, and the payment of the corresponding precautionary measures. For this reason, the drafting of these clauses requires utmost care and suitability.

    April 6, 2018