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Bundled Discounts

Bundled Discounts

Chapter:
(p.139) 8 Bundled Discounts
Source:
The Atlantic Divide in Antitrust
Author(s):
Daniel J. GiffordRobert T. Kudrle
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226176246.003.0008

This chapter explores the U.S. approaches to bundled discounts as illustrated by the LePage’s decision, the earlier Ortho decision and the disapproval of the LePage’s decision by the Antitrust Modernization Commission. It also examines the European Commission’s approach as manifested in its Guidance and the application of the “suction effect” to bundled discounts. It compares the usage of the equally efficient competitor test in both jurisdictions and discusses the derivation of that test from predatory pricing analysis. In addition, the chapter relates the discount attribution rule of the Antitrust Modernization Commission to the EC’s Guidance. Finally, the chapter examines bundled discounts in the light of their welfare effects.

Keywords:   Antitrust Modernization Commission, predatory pricing, LePage’s decision, Ortho decision, equally efficient, attribution

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