Rebates: Formalism, Effects and the Real World

CPI
-

June 08, 2016

CPI Europe Column edited by Anna Tzanaki (Competition Policy International) & Juan Delgado (Global Economics Group) presents:

Rebates: Formalism, Effects and the Real World  by Lia Vitzilaiou (Lambadarios Law Firm)

Intro by Anna Tzanaki (Competition Policy International)

How should rebate schemes by dominant undertakings be assessed under Art. 102 TFEU? Where does the law stand; and is the current EU legal position justified? Lia Vitzilaiou attempts to succinctly tackle these questions. In light of a list of theoretical and practical concerns, she makes a forceful case against formalism. But ultimately, noting recent shifts in the case law of EU Courts and the Commission’s policy, she asserts that a generalized focus on effects and market realities may be closer than imagined.
  1. Introduction

Rebates by dominant undertakings are a controversial area in competition law. While they can be part of genuine price competition and lead to lower prices, they can be also used by dominant firms as a means to exclude competitors and ultimately harm customers.

Under one approach, a rebate must be regarded as abusive under Article 102 TFEU if it is generally “loyalty enhancing,” without the need to demonstrate actual or even concrete anticompetitive effects on the market. This rather formalistic approach derives from the traditional case law of EU courts[1] and is considered to be the prevailing view of jurisprudence to date.

Under another approach, the

...
THIS ARTICLE IS NOT AVAILABLE FOR IP ADDRESS 216.73.216.134

Please verify email or join us
to access premium content!