context: The lesson of the predatory pricing case law is that, generally, above-cost prices are not anticompetitive, and although there may be rare cases where above-cost prices are anticompetitive in the long run, it is "beyond the practical ability" of courts to identify those rare cases without creating an impermissibly high risk of deterring legitimate procompetitive behavior (i.e., price-cutting). These principles extend to above-cost discounting or rebate programs, which condition the discounts or rebates on the customer's purchasing of a specified volume or a specified percentage of its requirements from the seller.
citation_a.signal: see
citation_a.identifier: 207 F.3d 1060, 1060-63
citation_a.parenthetical: applying price-cost test to volume discounts and market-share discounts offered by a manufacturer
citation_a.sentence: See NicSand, 507 F.3d at 451-52 (applying price-cost test to a challenge to up-front payments offered by a supplier to several large retailers on the basis that such payments were “nothing more than ‘price reductions offered to the buyers for the exclusive right to supply a set of stores under multi-year contracts’ ”); Concord Boat, 207 F.3d at 1060-63 (applying price-cost test to volume discounts and market-share discounts offered by a manufacturer); Barry Wright, 724 F.2d at 232 (applying the price-cost test to uphold discounts linked to a requirements contract); see also Race Tires, 614 F.3d at 79 (“[I]t is no more an act of coercion, collusion, or [other anticompetitive conduct] for [a supplier] ... to offer more money to [a customer] than it is for such [a] supplierf] to offer the lowest ... prices.”).
citation_b.signal: see also
citation_b.identifier: 614 F.3d 79, 79
citation_b.parenthetical: "[I]t is no more an act of coercion, collusion, or [other anticompetitive conduct] for [a supplier] ... to offer more money to [a customer] than it is for such [a] supplierf] to offer the lowest ... prices."
citation_b.sentence: See NicSand, 507 F.3d at 451-52 (applying price-cost test to a challenge to up-front payments offered by a supplier to several large retailers on the basis that such payments were “nothing more than ‘price reductions offered to the buyers for the exclusive right to supply a set of stores under multi-year contracts’ ”); Concord Boat, 207 F.3d at 1060-63 (applying price-cost test to volume discounts and market-share discounts offered by a manufacturer); Barry Wright, 724 F.2d at 232 (applying the price-cost test to uphold discounts linked to a requirements contract); see also Race Tires, 614 F.3d at 79 (“[I]t is no more an act of coercion, collusion, or [other anticompetitive conduct] for [a supplier] ... to offer more money to [a customer] than it is for such [a] supplierf] to offer the lowest ... prices.”).