X hits on this document

PDF document

EUROPEAN COMMISSION DG Competition - page 77 / 113

296 views

0 shares

0 downloads

0 comments

77 / 113

a case it is unlikely that the rebate system will have a loyalty enhancing effect. Because the volume target at which the rebate kicks in, is set at the same level for all buyers, the target may be too high for smaller buyers and/or too low for large buyers to have a loyalty inducing effect. The smaller buyers may never reach the threshold, while for the larger buyers the threshold may be easily reached. Where however it is established that most of the buyers are purchasing more or less the same amount and that the standard volume target happens to work as an individualised volume target for these buyers or where it is established that the standard volume rebate happens to target selectively buyers that are of particular importance for the possibilities of entry and expansion of competitors, the system may have loyalty enhancing effects and the

Commission will apply the same rebuttable presumption of predation in case the price for the additional units is below average total cost.

      • 7.2.3

        REBATES IN RETURN FOR THE SUPPLY OF A SERVICE BY THE BUYER

  • 170.

    Conditional rebates where the condition that triggers the rebate is the supply of a service by

the customer, such as a rebate for payment in cash or payment upon delivery, will normally not be abusive. However, this does not mean that conditional rebate systems as described in the previous paragraphs can be justified by claiming that the buyers are encouraged but not obliged to use the rebates obtained if they exceed a certain percentage of total requirements or an individualised volume target, for promotion or other activities.109

7.2.4 UNCONDITIONAL REBATES

Selective unconditional rebates (see predatory pricing) 171. Unconditional rebates, while granted to certain customers and not to others, are granted for every purchase of these particular customers, independently of their purchasing behaviour. Unconditional rebates differentiate the purchase price between customers and may have exploitative effects (see paragraph 141 above). However, unconditional rebates may also have exclusionary effects, for instance if a rebate is offered only to customers that might more easily switch to foreign suppliers because they are located in a border region. To assess possible

109 See Case 322/81 Michelin I, cited in footnote 26, paragraph 73; Case T-65/89 BPB Industries, cited in footnote 62, paragraph 71; Case T- 203/01 Michelin II, cited in footnote 57, paragraph 137.

Document info
Document views296
Page views296
Page last viewedWed Dec 07 14:45:54 UTC 2016
Pages113
Paragraphs1178
Words41343

Comments