Glossary of competition terms

This Glossary is based on definitions from DG COMP’s Glossary of terms used in EU competition policy (© European Union, 2002) and the OECD’s Glossary of industrial organisation economics and competition law (© OECD, 1993). Each term is enriched with references of national case laws from the e-Competitions Bulletin and Concurrences Review.

Below-cost resale price

Resale-below-cost (RBC) laws are one of three major types of regulatory restrictions on resale prices. The other two types are predatory foreclosure laws and mandatory minimum resale price maintenance (RPM) laws.

RBC laws usually forbid loss leader sales---resale prices that fall below the price the reseller paid for the product.

RBC price standards are generally determined and enforced by government agencies. The RBC price floor is specific to each product sold by each individual reseller based on its costs of acquiring a particular product for resale.