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CPI Antitrust Chronicle: Scrutinizing a Loyalty Discount and Rebate

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WASHINGTON, D.C., July 15, 2011 -- In the July 2011 issue of the CPI Antitrust Chronicle, Baker Botts L.L.P. Partner Charles Webb and U.S. Federal Trade Commission Counsel Cynthia Lagdameo discuss how pricing has never been more complex for companies operating across national borders.

In addition to considerations arising from local supply and demand conditions and factors such as national tax laws and exchange rates, they write, companies operating internationally must also take into account the potential effects that different countries’ competition laws may have on their pricing practices.

And over the past two decades, competition laws have proliferated to more than one hundred countries around the world, from micro-states such as Jersey and the Faroe Islands to rising economic superpowers such as Brazil, India and China.

The competition laws in virtually all of these countries potentially apply to the unilateral pricing conduct of firms found to have a dominant position. The standards for judging pricing conduct -- such as loyalty or bundled discounts, predatory pricing, excessive pricing, margin or price squeezes, and discriminatory pricing -- differ across jurisdictions, sometimes substantially.

Even standards within individual jurisdictions can be unsettled or in a state of transition. Likely in no other area of competition law are standards so unsettled.

The complete CPI Antitrust Chronicle article is available here.

Charles Webb counsels clients in the areas of mergers, international transactions, monopolization and abuse of dominance law, consumer protection, telecommunications regulation and postal regulation. His complete bio is available here.

More information about Baker Botts’ antitrust and competition law practice is available here.



About Baker Botts L.L.P.
Baker Botts is an international law firm with over 725 lawyers and a network of 13 offices around the globe. Based on our experience and knowledge of our clients’ industries, we are recognized as a leading firm in the energy, technology and life sciences sectors. Throughout our 170-year history, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit www.bakerbotts.com.

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