Unpacking Antitrust: What Is A Negative Tying Agreement Under The Federal Antitrust Laws?

The Short Answer: Negative tying is where a seller conditions the sale of one product (the Tying Product) on the buyer agreeing not to purchase a second product (the Tied Product) from a competing seller.

Why Is That Called A "Negative" Tie?

A positive tie is where a seller conditions the sale of the Tying Product on an agreement that the buyer also purchase the Tied Product from that same seller. A classic example is a printer manufacturer who ties its printers to its ink cartridges-compelling buyers who want the printer to buy the ink cartridges too.

A negative tie, on the other hand, requires the buyer to agree not to do something, i.e., not to purchase the ink cartridges from a competing seller of ink cartridges.