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Two horizontally differentiated firms compete for exclusivity of a superior input, then choose their quality and price. Exclusive dealing is the unique equilibrium when it results in a strictly higher industry profit than the non-exclusive outcome. Otherwise, there also exists a non-exclusive equilibrium. The quality pass-through of the firm with exclusivity is in general above one. Exclusivity lowers consumer surplus and total welfare unless competition is very intense. With demand asymmetry, the big firm wins exclusivity and consumer harm is lower. Banning exclusivity of only the big firm might lower total welfare and consumer surplus compared to no ban. With cost asymmetry, the less efficient firm can win exclusivity. We provide implications for digital platforms.