Bundled Discounts as Competition for Distribution
GCP – The Online Magazine For Global Competition Policy, June 2008
9 Pages Posted: 9 Jul 2011
Date Written: June 1, 2008
The antitrust law of bundled discounts is unsettled. LePage’s broadly condemned bundled discounts instituted by a dominant firm where it appeared that the discounts served no economic purpose other than to place rival, single product suppliers at a competitive disadvantage. In contrast, PeaceHealth more recently proposed a less restrictive standard, requiring for antitrust liability that the firm’s attributed price, allocating all discounts on the entire bundle of products to the rival’s product, be less than the firm’s costs of producing that product.
JEL Classification: L42, K21
Suggested Citation: Suggested Citation