Unfair Competition?

US firms considering expansion overseas might be surprised by differences in attitudes and laws between the US and some countries in Europe. For example, consider the frequent flyer miles that can be earned with some credit cards marketed jointly by an airline and card issuer. Or, the cashback bonus provided on Discover credit cards. 

Recently, Barclaycard co-branded its credit card with a British Airways/Deutsche BA Executive Club. A German association dedicated to fight against “unlawful competition” sued to halt the practice. American Express has already had to terminate its rewards program in Germany. Retailers’ rewards programs have been challenged under laws limiting or forbidding gifts, discounts and rebates. Such consumer benefits are viewed as anti-competitive in principle.

Source: European Card Review.