On the other hand, providing discounts or rebates on purchases of a single product can lead to increased loyalty to a single supplier, and concerns have been raised that, under certain circumstances, a dominant firm’s use of loyalty discounts or rebates can have anticompetitive effects analogous to de facto exclusive purchasing obligations. Determining whether such conduct risks an adverse impact on competition – as opposed to being competition on the merits – is no easy task.
Recently, the unilateral conduct working group (UCWG) of the International Competition Network (ICN) has explored this area, in an attempt to bring greater clarity and foster further convergence.
The complete Competition Law Insight article is available here.
Charles Webb’s bio is available here.
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