A Different View Of Market-Share Discounts

Law360, New York (October 29, 2012, 11:59 AM EDT) -- The Third Circuit has handed down an important decision raising questions about the use of market-share discounts by dominant firms and about attempts by such firms to obtain preferred placements.

A common business practice is for sellers to provide “market-share discounts” that allow the customer to receive a discount or rebate depending on what percentage of its purchases in a particular category are made from the seller. Unlike volume discounts, which are tied to the quantity purchased, market share discounts depend on the proportion of the...
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