Devising Loyalty Rebates that Comply with the As-Efficient-Competitor Test

Posted by D. Daniel Sokol

Hans Zenger, Charles River Associates (CRA) is Devising Loyalty Rebates that Comply with the As-Efficient-Competitor Test.

ABSTRACT: This article discusses the use of the as-efficient-competitor test in the assessment of single-product rebates under Article 102 TFEU. Section I first summarizes the practical experience with the test three years after its official introduction. Section II then outlines how firms can devise pro-competitive rebates that comply with the as-efficient-competitor test in an effective way. Section III, finally, assesses what regulators can do to ensure legal certainty under the effects-based approach toward loyalty rebates.