tie-in and tied product

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thtoan79

Senior Member
Vietnamese
Hello, here are some hard word in the case http://law.wlu.edu/deptimages/powell archives/76-15_ContinentalTVGTESylvania4.pdf (page 7)

"Court stated the reach of the per se rule against tie-ins under 1 of the Sherman Act as extending to all defendants with "sufficient economic power with respect to the tying product to appreciably restrain free competition in the market for the tied product . . . ." "

Actually I understand "a tie-in is an authorized product based on a media property a company is releasing, such as a movie or video/DVD, video game, television program/television series, board game, web site, role-playing game or literary property." (wikipedia), but it seems not to fit the context, because in this case, they talk about "bicycles", how could tie-ins of a "bicycle" exist? (Do you understand what I mean?)
More over, what is a "tied-product" ? And even then in this text, there is a word "tying product" (in the same paragraph with "tied product",), oh what on earth can this word mean?

Thank you,
 
  • Biffo

    Senior Member
    English - England
    Here is an explanation:

    Tying occurs when a firm "sell[s] one product but only on the condition that the buyer also purchases a different (or tied) product, or at least agrees that [it] will not purchase that product from any other supplier."(1) As panelists observed, nearly every item for sale arguably is composed of what could be viewed as distinct tied products, making tying one of the most ubiquitous business practices from an economic perspective.(2) Under prevailing legal precedent, however, not all items are considered tied products. Case law requires two separate product markets for a tie to exist.(3)
    COMPETITION
    AND
    MONOPOLY:
    SINGLE-FIRM CONDUCT UNDER
    SECTION 2 OF THE SHERMAN ACT
    U.S. Department of Justice
    2008
    http://www.justice.gov/atr/public/reports/236681_chapter5.htm

    _____________________________________________________________________________________
    Note
    For further information I suggest you search online for sherman act section 2 monopolization tying
     
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