Daniel J. Gifford and Robert T. Kudrle
- Published in print:
- 2015
- Published Online:
- September 2015
- ISBN:
- 9780226176109
- eISBN:
- 9780226176246
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226176246.003.0008
- Subject:
- Law, Company and Commercial Law
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 ...
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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.Less
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.
