This article is cross-posted in both English and French at Thibault Schrepel’s outstanding competition blog Le Concurrentialiste. Like most antitrust issues today, questions about loyalty discounts are relevant across the globe as competition regimes and courts grapple with the best way to address them.
Companies like to reward their best customers with discounts. It happens everywhere from the local sandwich shop to markets for medical devices, pharmaceutical products, airline tickets, computers, consumer products, and many other products and services.
Customers like loyalty-discount programs (or rebates) because they get more for less. And the reason so many companies offer them is because they are successful.
Everyone wins, right?
Usually. But the program could very well violate antitrust and competition laws in the United States, the European Commission, or other jurisdictions.