Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Wednesday, August 26, 2009

An Evidence-Based Approach to Exclusive Dealing and Loyalty Discounts

Posted by D. Daniel Sokol

WrightJosh Wright of George Mason Law School advocates An Evidence-Based Approach to Exclusive Dealing and Loyalty Discounts.

ABSTRACT: At the recent Section 2 hearings focused on the antitrust analysis of exclusive dealing contracts, a sensible consensus view emerged that a necessary condition for anticompetitive harm in an exclusive dealing or de facto exclusive contract is that the contract deprives rivals of the opportunity to compete. These contracts, including market-share discounts and loyalty discounts, can harm competition when they deprive rivals of an entrenched firm from accessing distribution sufficient to achieve a minimum efficient scale. The recently-withdrawn Section 2 Report reflects this consensus. This article discusses the strengths and weaknesses of the Section 2 Report approach to exclusive dealing and loyalty discounts.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/08/an-evidencebased-approach-to-exclusive-dealing-and-loyalty-discounts.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a50287d5970b

Listed below are links to weblogs that reference An Evidence-Based Approach to Exclusive Dealing and Loyalty Discounts:

Comments

Post a comment