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Rebates Systems
Rebates systems are defined as changes in pricing applications for
the buyers implied by the undertakings operating at different levels of
the production or distribution chain
4
.
Rebates systems are classified in several ways in practice and by
scholars. In this article, we will base on the effects of the rebates with
regard to the abuse of dominant position.
Rebates Systems Which Are Considered as Abusive
First one of these types of rebates is fidelity rebates, (or loyalty
discounts) which conduct the buyers to supply their entire needs from
one undertaking. The undertaking in dominant position provides fideli-
ty rebates on condition that the buyer supplies the entire or an impor-
tant part of its needs from the relevant undertaking
5
.
Second type of rebates, which are considered as abusive are the
target rebates. Target rebates imply targets related to the future fore-
casted needs of buyers or targets which are independent from the buy-
ers’ needs
6
.
In this context, the undertaking in dominant position assures its
supply of products. On the other hand, it guarantees buyers’ fidelity
and complicates and restricts the activities of competing undertakings
while preventing potential new entrants to the market hereby.
Rebates Systems Which Are Considered as Legal
In principle, quantity discounts are not considered as abusive in
Competition law, because the quantity discounts are not provided for
purchase in a specific period. Quantity rebates are only related to the
purchase from the supplier, are applied to entire buyers and provided
objectively regarding the amount of the purchase. Hence, two buyers,
who purchase the same amount of products, acquire equal rebates.
COMPETITION LAW
149
4
Kocabaş
, ibid, p. 5.
5
Görgülü, Ümit
,
Hâkim Durumun Kötüye Kullanılması Kapsamında Fiyat Ayrımcılığı
Uygulamaları,
Rekabet Kurumu Uzmanlık Tezleri Serisi No: 32, Ankara, 2003, p. 17.
6
Kocabaş
,
ibid, p. 9.