Hoffmann-La Roche v. Commission
European Union Court of Justice
1979 E.C.R. 461 (1979)
- Written by Kelli Lanski, JD
Facts
Hoffmann-La Roche (Roche) (defendant) entered into agreements with 22 wholesale purchasers of its vitamins, paying a rebate to purchasers who bought all or most of their requirements from Roche, known as a fidelity rebate. The rebate amount varied by wholesaler. Some purchase agreements provided for a fixed-rate fidelity rebate, regardless of the number of products purchased, as long as the purchasers met most or all of their annual requirements from Roche. Other agreements provided for progressive-rate rebates, increasing the discount as purchasers bought higher percentages of their annual requirements from Roche. The European Commission (the commission) (plaintiff) found that Roche had abused its dominance in violation of Article 102 of the Treaty on the Functioning of the European Union (TFEU) because both types of fidelity rebates restricted purchasers’ abilities to buy from other suppliers and prevented other suppliers from working with Roche’s customers. Roche appealed, arguing that the discounts were akin to permissible quantity rebates.
Rule of Law
Issue
Holding and Reasoning ()
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