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Tying and bundling have positive and negative effects.Both strategies include the transfer of market power from a market with dominant position to secondary market where a company does not hold a dominant position. Given two markets, market A is a monopolistic market for one product – market B is a competitive market for a complementary product. The monopolistic company bundles its product from market A with a product of market B. Resulting negative effects of this strategy are:
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and the Commission’s Guidance we can conclude that for tying or bundling to be abusive, the following conditions must be fulfilled:
the tying and tied products are distinct products;
the tying practice is likely to lead to anti-competitive foreclosure;
there is no objective justification for the tying or bundling.
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