Jj Asdoandwqdnw

Tying or bundle discounts

http://www.internationalcompetitionnetwork.org/uploads/library/doc356.pdf

Tying is commonly defined as a dominant firm selling one product only on the condition that the buyer also purchases a different product or agrees that it will not purchase the tied product from another supplier. It also includes the sale of products or services that could be viewed as separate but are only sold together as a bundle. To determine whether two products or services are separate many agencies focus on the analysis of the demand side and whether there is sufficient (consumer) demand for the allegedly tied product or service. In various jurisdictions supply side aspects are also of relevance, such as technological possibilities and industry practice. In this assignment, bundle sales of two or more products together are more like a tying!

Bundled discounting is commonly defined as offering discounts or rebates based on a buyer’s purchase of two or more different products or services. Bundled discounting arrangements do not prevent buyers from purchasing individual products separately, although the aggregate price of the individual components is typically higher than the price of the bundle.

The Brazilian Council for Economic Defense (CADE) indicates that tying may also be considered as a violation of consumer protection law, that individuals may challenge, even in cases of non-dominant firms, when harmed individually.

Brazil is one of the “International Competition Nework” (ICN) members.

Brazilian Council for Economic Defense (CADE) and European Commission describe the way tying practices may be used by firms that operate in regulated markets. CADE notes that tying arrangements may affect regulated industries by means of cross subsidizing.

Involved regulations

http://www.internationalcompetitionnetwork.org/uploads/questionnaires/uc%20tying/nga-brazil.pdf

Article 20 of Law no 8,884/94 (the “Brazilian Competition Law”) sets forth that “Even in...