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Loyalty Rebates After Intel: Time For The European Court Of Justice To Overrule Hoffman-La Roche

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  • Damien Geradin

Abstract

In June 2014, the GCEU confirmed the Decision of the European Commission that condemned Intel for breaching Article 102 TFEU by adopting exclusive rebates and “naked restrictions.” This judgment, in which the GCEU considered that in line with Hoffman-La Roche loyalty rebates should be quasi-per se illegal, has been subject to many criticisms as it is not in line with the teachings of economics. This article discusses the shortcomings of this judgment and argues that it is a great time for the CJEU to abandon the application of its quasi-per se rule of illegality approach to exclusive dealing and loyalty rebates and replace that application with a structured rule of reason. Such an approach would have many advantages and create greater coherence in the case law of the CJEU on unilateral pricing conduct.

Suggested Citation

  • Damien Geradin, 2015. "Loyalty Rebates After Intel: Time For The European Court Of Justice To Overrule Hoffman-La Roche," Journal of Competition Law and Economics, Oxford University Press, vol. 11(3), pages 579-615.
  • Handle: RePEc:oup:jcomle:v:11:y:2015:i:3:p:579-615.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhv023
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    Cited by:

    1. Lisa Bruttel, 2019. "Is There a Loyalty-Enhancing Effect of Retroactive Price-Reduction Schemes?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(3), pages 575-593, May.

    More about this item

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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