Where Do We Stand on Discounts? - A Danish Perspective

Abstract

The dominant undertaking’s ability to award discounts and other loyalty inducing considerations are subject to much ambiguity and many unsettled issues. Despite discounts being a commercial requirement, even for the dominant undertaking, it’s difficult to draw up clear principles, and while the approach to non-dominant undertaking’s restriction of competition has been fundamentally recast over the last 20 years, the appraisal of single company behaviour remains more formal and rigid. However, there have recently been indications that some of the same leniency might have been extended to discounts and single company behaviour. Consequently, an attempt shall be made to provide some guidelines under EU and Danish practice’red. Danish companies would normally be governed by both and the later has been aligned to the former, thus providing general guidance on EU practice.

Keywords: competition law, discounts,abuse of dominance, Article 102