Despite the widespread use of distribution contracts in Iranian trade, the legal nature and obligations of the parties to them have not been clearly clarified in the country's legal system and are faced with many ambiguities. This research aims to analyze the rights and obligations of the parties to a distribution contract in light of the requirements of competition law. The research method is descriptive-analytical and uses library resources. The findings show that the distribution contract in Iran lacks a clear legal framework and does not fit into the framework of traditional fixed contracts until the amendments to the Commercial Law are approved. Therefore, identifying its nature requires resorting to the principle of the rule of will (Article 10 of the Civil Code). Also, restrictive conditions in these contracts (such as determining the selling price and the non-compete clause) in the absence of valid economic justification can conflict with competition law and be identified as anti-competitive agreements. The results of the research show that this contract, as a contractual and foundational contract, requires careful regulation to maintain a balance between the interests of the supplier, distributor, and consumer. Ultimately, the development of comprehensive and coherent regulations for distribution contracts, considering the balance between contractual freedom and competitive requirements, is proposed as the main solution.