Rebates: Formalism, Effects and the Real World

By Lia Vitzilaiou –

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 effectively harm customers. Under one approach, a rebate must be regarded as abusive if it is generally “loyalty enhancing” regardless of its concrete effects on the market. This approach derives from the traditional case law of Europe