The price of loyalty

The price of loyalty

Applying the European commission's proposed approach to assessing conditional rebate schemes

The legality of conditional rebate schemes, when operated by dominant companies, has long been a controversial issue in European competition policy. These schemes involve discounts or rebates granted by suppliers to customers who commit to meet certain targets in their purchasing.

This bulletin explores the implications of the proposed new effects-based regime for companies trying to assess the legality of their rebate schemes.

The price of loyalty