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ARTICLE · 03 JULY 2014

Conditional Pricing Practices In The U.S. Spotlight

Jones Day
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The FTC and the Antitrust Division of the DOJ hosted a workshop to explore the economic and legal implications of conditional pricing practices.

United StatesAntitrust/Competition Law

On June 23, 2014, the Federal Trade Commission ("FTC") and the Antitrust Division of the U.S. Department of Justice ("DOJ") hosted a one day workshop to explore the economic and legal implications of conditional pricing practices such as loyalty discounts, market share rebates, bundled pricing, and similar incentives.  How the antitrust laws should treat conditional pricing practices has been the subject of significant debate in recent years. 

The stated goal of the workshop was to advance the economic understanding of the potential harms and benefits of conditional pricing and to reexamine their treatment under the antitrust laws.  Panelists drawn from the agencies, academia, and the private bar discussed a number of practices that explicitly or effectively tie pricing to customer commitments to purchase a specified share or volume of products or achieve a stated share of sales.  The workshop participants considered both the theoretical and empirical developments in

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