Antitrust Risk of MFN Clauses

Most favored nation clauses (MFNs) involve a seller agreeing to deal with a buyer on terms that are at least as favorable as those granted to any other party. While most MFNs are procompetitive and result in efficiencies for the contracting parties such as reduced transaction costs, MFNs also have the potential to be anticompetitive and run afoul of the U.S. antitrust laws.

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