A comparative analysis of rebate schemes in EU competition law and US antitrust law

Abstract

Rebates and Discounts are extensively used in every day commercial transactions and may provide several pro-competitive benefits to both the seller and the buyer as well as to the end consumer. However, there may be a fine line between rebates which are procompetitive and others which are not. This research project analyses the types of rebates and discounts granted by a firm with market power to suppliers. Subsequently, a critical analysis of the EU and US position in relation to rebate schemes and how these rebates may be deemed anti-competitive is carried out. A comparative analysis between both the EU and US approach is then carried out in order to determine the divergences and similarities on both sides of the Atlantic. In light of the above analysis, this research project submits certain proposals which could possibly improve the current scenario.