Exclusivity rebates are used in markets ranging from postal deliveries through ice cream to computer processors and are normally regarded as beneficial to consumers. However, when applied by dominant companies such rebates could potentially entrench an existing market position and have been penalised by European antitrust authorities as an “abuse of dominance”. In a rare court defeat for the European Commission, the Court of Justice of the EU in its Intel judgment released on 6 September 2017 gives welcome comfort to companies with strong market positions, holding that it is not necessarily illegal for a dominant company to grant rebates conditional on exclusivity. The Court says that, provided the company can show evidence that the rebates are not capable of causing anti-competitive
The EU Court of Justice rules that exclusivity rebates cannot be presumed to be an abuse of dominance (Intel)
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