<P> A most favoured nation clause (also called a most favoured customer clause or most favoured licensee clause) is a contract provision in which a seller (or licensor) agrees to give the buyer (or licensee) the best terms it makes available to any other buyer (or licensee). In some contexts, the use of such clauses may become commonplace, such as when online ebook retailers contract with publishers for the supply of e-books . Use of such clauses, in some contexts, may provoke concerns about anticompetitive influences and antitrust violations, while in other contexts, the influence may be viewed as procompetitive . </P> <P> One example where most favoured nation clauses may appear is in institutional investment advisory contracts, where if a certain number of conditions are met, one client may be entitled to the lowest fee offered to other clients with a substantially identical investment strategy and the same or lower level of assets under management . </P> <P> The current EU competition law position is that MFN clauses will infringe Article 101 (i) if in the individual circumstances of the case result in an appreciable adverse effect on competition in the European Union . This is likely to happen when the parties to the agreement have substantial market power . </P> <P> It is recognised by EU courts and regulators that such clauses are widely used in a number of industries including most topically with online travel agents . However the regulatory tide in the EU appears to be turning against the use of these clauses . In a number of recent EU cases in the UK and Germany, MFNs have been condemned when used by companies with significant market power . </P>

When was china given most favored nation status