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Single-Product Loyalty Rebates

Single-Product Loyalty Rebates

Is a Large Gap Narrowing?

(p.117) 7 Single-Product Loyalty Rebates
The Atlantic Divide in Antitrust
Daniel J. GiffordRobert T. Kudrle
University of Chicago Press

This chapter identifies divergent approaches to the evaluation of loyalty discounts followed in the United States and the European Union. It tracks the evolving approach of the U.S. courts to loyalty discount issues. It explores the concepts of “effective price,” “suction effect,” “required share,” “commercially viable share,” and “contestable share” that underlie EU analysis; examines the European Commission’s Discussion Paper and Guidance on loyalty discounts (including the “equally efficient competitor” standard and the actual approaches taken by the Commission and the courts to recent cases post-dating the Guidance.

Keywords:   suction effect, discussion paper, guidance, required share, commercially viable share, contestable share, equally efficient, effective price

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