physics - 8:53 pm on Nov 24, 2009 (gmt 0)
Is this ethical? Is it even legal? To me, it sounds like Budweiser going into a bar and telling the owner, "We'll pay you not to serve Miller." (As opposed to "We'll pay you to serve Bud in addition to Miller.")
This sort of thing is done all the time I think. Haven't you ever been to a restaurant that only serves Coke products or only serves Pepsi products?
Plus, in this case it's more like you walk into a bar and say "Hi, I'm from Budweiser. I know that you've been having to give away your beer from Miller for free. I'm willing to let you make money on selling Budweiser, so long as you make an exclusive agreement with me. Deal?"
Not the best analogy because the provider/distributor is backwards in relation to the OP but I digress.