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most-favored-nation clause
noun
- a clause in a commercial treaty or contract by which each signatory agrees to give the other the same treatment that is or will be accorded any other nation.
Example Sentences
France said the EU also approved a declaration to the World Trade Organization to suspend the most-favored-nation clause for Russia that would withdraw its special treatment throughout the bloc.
The French presidency said in a statement that the bloc also approved a declaration to the World Trade Organization āon suspending the application of the most-favored-nation clause for Russia and suspending the examination of Belarusā application for accession to the WTO.ā
Crucially, Appleās arrangement with the publishers included a so-called āmost-favored-nationā clause, which ensured that if a retailer like Amazon undercut the publisherās designated price ā which it had shown a willingness to do ā Apple had the right to do so as well.
During the trial, Judge Cote seemed to breathe new life into Appleās position that it didnāt āforceā the five major publishers to demand that Amazon change its business model, when she suggested a distinction between Apple ārequiringā the publishers to ārequireā Amazon to shift to the agency model, and the publishers acting on their own once they realized that the most-favored-nation clause made it ātechnically impossibleā for them to agree to continue a wholesale relationship with Amazon.
The most-favored-nation clause therefore āeliminated any riskĀ that Apple would ever have to compete on price when sellingĀ e-books, while as a practical matter forcing the Publishers toĀ adopt the agency model across the board,ā Judge Cote found.
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