18 Dec 2020 Tie-In Agreements Competition Law
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The link law is changing. Although in the past the Supreme Court has treated some linkage points as illegal in itself, the preliminary bodies have begun to apply the more flexible “rule of reason” to assess the competitive impact of tied sales. The cases deal with specific framework conditions, but the general rule is that binding the products raises questions of cartel law when they restrict competition without offering benefits to consumers. Banks are allowed to take measures to protect their loans and to guarantee the value of their investments, such as the requirement. B of guarantees or guarantees from borrowers. The law frees so-called “traditional banking” practices from its illegality, and is therefore aimed less at limiting banks` lending practices than at ensuring fair and competitive practice. A large portion of the BHCA claims are dismissed. Banks still have some leeway to design credit contracts, but if a bank clearly crosses the limits of decency, the complainant is compensated with three damages. The loyalty is an often illegal agreement in which the consumer must also buy another product that exists in a separate market. The link falls within the broader legal framework of illegal competition, which was originally censored by the Sherman Antitrust Act and refined in subsequent acts. The distinction between the (illegal) link and the grouping (legal within the borders) is important for businesses.

Links are also called “product bindings” or “linked sales.” Commercial practice of packaging the sale of one product to the purchase of another product. If the link is not objectively justified by the nature of the products or their commercial use, this practice may restrict competition. Economic theory suggests that a company with market power in a market (a constraining market) may, under certain conditions, be able to take advantage of that position or dominant position in another market (linked market), push its competitors out of that second market and then raise prices above the level of competition. From a competitive analysis perspective, the main negative effect of the commitment on competition is therefore to eliminate the linked product from the market. In addition, fixing can result in higher prices for both the binder and the related product. European Commission On 21 June 2017, the Competition Authority published the commitments made by Schneider Electric, which acted for the maintenance of medium and low voltage electricity distribution facilities, the Authority`s obligations to review the (…) The Indian Competition Commission (CCI), the country`s competition court authority, inquired about the Harshita Chawla case against WhatsApp Inc. and golds in August 2020, in which it notably informed the mobile messaging service WhatsApp Inc. of allegations of sexual abuse (…) Commitment agreements are not necessarily illegal.

Cartel problems are raised by binding agreements to the extent that they are used to maintain or increase the seller`s existing market power or to impede competition in the related product market.

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