Tying Versus Bundling


Summary

This practice note examines the differences between tying and bundling. Both are unilateral actions that sellers take against customers, but one is more likely to be deemed anticompetitive, while the other is generally permissible under the antitrust laws. Sellers commonly bundle products and services as a sales tactic, but antitrust liability can arise when the seller engaging in bundling has market power and the bundle meets the elements of illegal tying described below.