1. Introduction Offering loyalty rebates is a common and effective competitive strategy that firms use to sell larger volumes to their customers. By granting fidelity discounts, producers lower the effective price their customers have to pay for incremental purchases. Loyalty rebates therefore permit suppliers to exert increased competitive pressure on marginal sales, which are more heavily contested by rivals than inframarginal orders [1]. Even so, under EU competition law dominant companies have generally been prohibited from offering loyalty rebates to their customers, largely in order to shield smaller competitors from what was considered unfair competition by dominant suppliers [2]. Among antitrust scholars, this per se prohibition has long been regarded as a problematic
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Rebates and competition law: An overview of EU and national case law
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