Fidelity and Bundled Rebates and Discounts

In a “bundled” discount, a combination of products is offered at a lower price than the sum of the prices of the components of the bundle. A “loyalty” discount is a lower price offered to customers who buy more than a threshold volume. The OECD Competition Committee debated fidelity and bundled rebates and discounts in June 2008. This document includes an executive summary and the documents from the meeting: an issues paper by Mr. Antonio Capobianco for the OECD, written submission from Belgium, the Czech Republic, Denmark, The European Commission, France, Germany, Hungary, Indonesia, Japan, Korea, The Netherlands, New Zealand, Norway, Russia, South Africa, Chinese Taipei, Turkey, the United Kingdom, the United States and BIAC as well as an aide-memoire of the discussion.