The antitrust treatment of loyalty discounts in Europe: towards a more economic approach

G Federico - Journal of European Competition Law & Practice, 2011 - academic.oup.com
Journal of European Competition Law & Practice, 2011academic.oup.com
A new approach to loyalty discounts has been proposed in the 2009 Guidance Paper issued
by the European Commission, but the test proposed in that paper to assess the legality of
such rebates raises practical difficulties which undermine its validity as the primary tool to
detect exclusionary conduct. Even if the test is satisfied, the theories of consumer harm
applicable to rebates need to be articulated and verified against the characteristics of the
market to embrace an economically sound approach to loyalty discounts.
Abstract
A new approach to loyalty discounts has been proposed in the 2009 Guidance Paper issued by the European Commission, but the test proposed in that paper to assess the legality of such rebates raises practical difficulties which undermine its validity as the primary tool to detect exclusionary conduct. Even if the test is satisfied, the theories of consumer harm applicable to rebates need to be articulated and verified against the characteristics of the market to embrace an economically sound approach to loyalty discounts.
Oxford University Press
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