Firms use fidelity rebates to offer better prices to those buyers that demonstrate loyalty in the purchases they make. These schemes are often introduced as discounts on an existing price, and so may stimulate demand as well as helping to achieve efficiencies. However, in some circumstances they can prevent rivals from competing effectively or force the exit of rivals.
In recent years there have been important cases in different jurisdictions, and some have led to unprecedented fines. However, there have long been important differences in the way in which different agencies assess fidelity rebates, and while these different approaches have evolved in recent years, differences persist.
In June 2016, the OECD discussed the different approaches to assessing fidelity rebates and looked at how these are changing.
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