Wednesday, April 20, 2011
Posted by D. Daniel Sokol
Giulio Federico (CRA) discusses The Antitrust Treatment of Loyalty Discounts in Europe: Towards a more Economic Approach.
ABSTRACT: A new approach to loyalty discounts has been proposed in the 2009 Guidance Paper issued by the European Commission, but the test proposed in that paper to assess the legality of such rebates raises practical difficulties which undermine its validity as the primary tool to detect exclusionary conduct. Even if the test is satisfied, the theories of consumer harm applicable to rebates need to be articulated and verified against the characteristics of the market to embrace an economically sound approach to loyalty discounts.