Price discrimination from the perspective of economics and competition law in Vietnam

Abstract

Discrimination on price (in short, price discrimination) is a common type of discrimination in business transactions. In terms of economics, price discrimination exercised by businesses to capture consumer surplus and maximize profits does not necessarily result in adverse consequences for the society, nor does it always have the purpose or effect of hindering competition in the market. However, such acts of price discrimination may restrict competition, and cause harms to consumers. On the basis of analyzing the economic nature of price discrimination, this article analyzes and gives comments on the application of various trade conditions under Point d, Clause 1 and Point a, Clause 2, Article 27 of the 2018 Law on Competition in similar transactions.