Remanufacturing Marketing Decisions in the Presence of Retailing Platforms in the Carbon Neutrality Era

Background: In response to the specific goals of carbon peaking and neutrality, remanufacture is becoming increasingly popular. With the marketplace being more and more adopted, an independent remanufacturer (IR) could sell its products via either the reselling model or the marketplace model. In order to contribute more to carbon neutrality, we investigate the optimal marketing decision for remanufacturing. We construct two models namely reselling model and the marketplace model, and further explore the effects of each marketing model on the decisions and profits of both the IR and the platform firm. Methods: We examine a platform firm that sells new products and an IR that sells remanufactured products under two marketing models based on game theory: (1) a reselling model in which the IR sells remanufactured products to the platform firm; then the platform firm resells to consumers; (2) a marketplace model in which the IR sells remanufactured products to consumers through the platform. Results: Our results show that aiming at carbon neutrality, the IR would be induced by the marketplace model to undertake remanufacturing operations and remanufacture products as many as it could still meet the market demand. Meanwhile, the marketplace model encourages the IR to rethink its work and manufacture more products under certain conditions. Furthermore, both the platform firm and the IR prefer the marketplace model to the reselling model within a Pareto zone. In addition, we find that both the platform firm and the IR could benefit from the marketplace model when they take carbon neutrality under consideration. Conclusions: This study provides managerial insight from two aspects. Remanufactures could decide their marketing model via thorough consideration of market competition, commission rate, and production cost. The government could do more to protect the marketplace environment in order to stimulate the internal vitality of the platform in the achievement march of carbon neutrality purpose. That is, this study will provide good guidance for sustainable development decision-making of remanufacturing marketing platforms, and further contributes to the achievement of the carbon neutrality goal.

Non-linear pricing in E-commerce: an exploration

PurposeTo understand the new non-linear pricing in E-commerce. The present paper aims to put forth an idea of using tie-in agreement in the electronic commerce market in the name of trust in India. According to the Indian antitrust law, tie-in agreement is not allowed to use as compulsory in an offer to the buyer. This means that a tie-in agreement cannot be a compulsion or only an option to the buyer. This means it can be an extra option.Design/methodology/approachThe paper shows that using this logic the sellers are giving two options simultaneously to the buyer: (1) a commodity with a tie-in agreement and (2) the same commodity without a tie-in agreement. Therefore, there are two price mechanisms that are present. Now it is the decision of the buyer to choose between the two. These two price mechanisms create a new variable called trust. If the buyer selects the first option, then that buyer will not be treated as a trustworthy buyer, but in the second case, the buyer would be treated as a trustworthy or the affianced buyer. Therefore, the buyer would be leaning toward the second option. The paper proves that in the second option it would be difficult to minimize the consumer expenditure. As a result, there would be a situation of non-linear pricing in the name of trust which is hidden in the offer. The present work gives both theoretical models and empirical justifications.FindingsWe find that E-wallet is often used when a consumer orders food online but offline cash payment is preferred. Therefore, the offer does matter for the consumer. Hence, the offer can be used to make a tie-in arrangement. Therefore, even if there is a tie-in arrangement in online food servicing applications, the Competition Commission of India can restrict such practices as for illegal tying, the firm has to have the monopoly power in one market and there should be compulsory tie-arrangement in another market. But it does not mean that E-wallet tie-arrangement cannot be ignored as the monopoly power in the online food servicing market can influence the market share in the E-wallet market. Tie-in arrangement is also important, as the consumer has to spend more under cashback offer conditions which reduce the long-run gain of consumers.Originality/valueThe paper considered trust as a new element in forming non-linear pricing. This is new to this literature.

Upaya KPPU Menangani Dugaan Pelanggaran Layanan Rapid Test Diagnosis Covid-19

Indonesian Competition Commission (KPPU) conducted an initiative case research to the alleged tying-in Rapid Test services agreement in several hospitals. In the research, all hospitals that offer Rapid Test services are the objects of research. KPPU conducts market structure analysis, compliance with the elements of Article 15 paragraph (2) of Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Competition, and the consequences of implementing closed agreements. Implementing this tying agreement may fall into the investigation category if, in practice, it causes monopolistic practices and or unfair business competition. Analyzing the KPPU's efforts to handle suspected business competition violations committed by hospitals, legal research will use a statutory and conceptual approach. Considering that the tying agreement can actually or potentially hinder business competition, based on KPPU's duties and authorities can enforce the law and advocate for business competition.Keywords: Tying Agreement; Rapid Test; Hospital; KPPU.AbstrakKomisi Pengawas Persaingan Usaha (KPPU) melakukan penelitian perkara inisiatif terhadap dugaan adanya perjanjian tying yang dilakukan sejumlah rumah sakit pada layanan Rapid Test. Dalam penelitian tersebut, seluruh rumah sakit yang menawarkan layanan Rapid Test menjadi objek penelitian, KPPU melakukan analisis struktur pasar, pemenuhan unsur-unsur Pasal 15 ayat (2) Undang-Undang No. 5 Tahun 1999 tentang Larangan Praktek Monopoli dan Persainan Usaha Tidak Sehat, dan akibat pelaksanaan perjanjian tertutup. Pelaksanaan perjanjian tying ini dapat masuk kategori penyelidikan jika dalam praktiknya menyebabkan praktik monopoli dan atau persaingan usaha tidak sehat. Dalam menganalisis upaya KPPU menangani dugaan pelanggaran persaingan usaha yang dilakukan rumah sakit, digunakan penelitian hukum melalui pendekatan peraturan perundang-undangan dan konseptual. Mengingat perjanjian tying secara aktual maupun potensial dapat menghambat persaingan usaha, maka KPPU berdasarkan tugas dan wewenangnya dapat melakukan penegakan hukum maupun advokasi persaingan usaha.Kata Kunci: Perjanjian Tying; Rapid Test; Rumah Sakit; KPPU.

Unfinished Reform of the Institutions Enforcing UK Competition Law

Chapter 8 on institutional reform written by Bruce Lyons notes that the period since 1998 has seen major changes in competition law, including: public interest was replaced by promotion of competition as the primary duty; anti-competitive agreements and abuse of a dominant position were prohibited, with significant penalties for breach; and the minister withdrew from case decisions, making the institutions determinative. There were also major organizational changes, including merger of the OFT and the Competition Commission to form the Competition and Markets Authority, and establishment of the Competition Appeal Tribunal as a specialist appeals body. In the chapter, Lyons considers the evolution of these institutions from the perspective of how they frame and influence the quality of first instance determinations. Institutions are hostages to their history, and he traces some of the problems faced by the CMA to its institutional roots. New challenges beyond its control are also identified. Reform is needed. The chapter concludes that some of the CMA’s suggestions for legislation are misguided, particularly in replacing its competition duty with ‘the consumer interest’ and reducing the standard of review by the CAT. Alternative proposals are appraised, including a potential change to a prosecutorial system. Lyons argues convincingly that genuinely independent decision-making within the CMA should be preferred and would permit a more limited standard of review.

THE OBJECTIVITY OF THE BUSINESS COMPETITION SUPERVISORY COMMISSION IN DECIDING BUSINESS COMPETITION CASES IN INDONESIA

This study discusses the commission board’s objectivity in a trial while deciding a business court case. This study aims to identify the commission board and investigators’ authority in a courthouse, and the fact that they are in the same institution as well as the concern. This study uses a type of normative research through a statutory approach and a conceptual approach. This research’s document source is obtained by tracing statutory regulations, especially those related to business competition. The research shows a relationship that can affect The Indonesian Competition Commission (ICC) decision regarding the extent of authority that ICC has, as contained in the provisions of Article 36 of Law No. 5/1999. This obscurity can provide legal loopholes that have potentially offer a wide range of unlawful authority for ICC. Therefore, the Government has to amend the current regulation.

Innovation, Patents, and Competition in Modern Agriculture: A Case Study of Bayer and Monsanto Merger

The use of digital technologies to aid the agronomic decision making of farmers characterizes modern agriculture. Digital farming is expected to enhance the market power of leading innovative firms in the seed industry, which is already having a high level of concentration. The merger of two leading innovative firms—Bayer and Monsanto—is to be seen in this context. This article examines the emerging anticompetitive considerations from the deal and the contribution of the Competition Commission of India in alleviating such considerations while approving the deal. It is found that threats were emerging in three areas—traits and seeds, nonselective herbicides, and digital farming platforms. To eliminate the anticompetitive effects of the deal, both the companies were required to divest their research and development intensive trait, seed, and nonselective herbicide businesses. They were also required to license the proprietary active ingredients of nonselective herbicides, if the use of their seeds was linked to the application of such herbicides, on fair, reasonable, and nondiscriminatory (FRAND) terms. They were also required to license the agronomic data, collected from India, and used in their digital platforms, to potential users on FRAND terms.

On "Dumping" and the Competition Act of South Africa: No "double remedy"

In "'Dumping' and the Competition Act of South Africa", Vinti espouses that the Competition Commission has jurisdiction over the actions of extra-territorial parties insofar as such actions involve "prohibited price discrimination" or "price dumping". He finds that the Competition Act and the International Trade Administration Act both bestow jurisdiction over the matter and hence argues that this would constitute an unfair double remedy if both authorities were to take action. He therefore proposes, on the basis of a Memorandum of Agreement that has been concluded between the Competition Commission and the International Trade Administration Commission, that either of the Acts should be amended to ensure that no such double remedies are imposed. Although it is agreed that such "double remedy", if applied, would indeed be unfair for several reasons, this article argues that no such double remedy exists and that, despite the provisions of the Competition Act, the Competition Commission has no jurisdiction in matters related to dumping.