Legal Definitions - tying product

The tying product is the desirable or popular item that a seller uses as leverage to compel a buyer to also purchase a separate, often less desirable, or less popular item (known as the tied product) from the same seller. Essentially, the seller makes the purchase of the tying product conditional on the buyer also acquiring the tied product. This practice can sometimes raise antitrust concerns if it harms competition by limiting consumer choice or stifling other businesses.

• Example 1: High-Demand Concert Tickets

  A promoter for a highly anticipated music festival announces that to purchase tickets for their headlining act (a globally renowned band), customers must also buy a "festival experience package" that includes overpriced merchandise and a subscription to the festival's lesser-known streaming service.

  In this scenario, the tickets for the headlining act are the tying product. These are the desirable items that customers eagerly want, and the festival organizers are using this demand to force buyers to also purchase the less appealing merchandise and streaming service subscription.

• Example 2: Specialized Industrial Equipment

  A manufacturer produces a unique, patented industrial machine that is essential for a specific type of production process. When businesses want to purchase this machine, the manufacturer requires them to also sign a long-term contract for maintenance services exclusively provided by the manufacturer, even though other qualified service providers exist.

  Here, the unique, patented industrial machine is the tying product. It is the crucial piece of equipment that businesses need, and the manufacturer leverages its exclusive control over this essential machine to compel buyers to also purchase its maintenance services, which might otherwise be obtained from competitors.

• Example 3: Popular Video Game Console

  A leading video game company releases a new, highly anticipated gaming console. To purchase this console, customers are required to also buy a specific, proprietary gaming headset manufactured by the same company, even though many third-party headsets are compatible and preferred by gamers.

  The new, highly anticipated gaming console serves as the tying product. It is the primary, desirable item that consumers are eager to acquire, and the company uses the console's popularity to force customers to also purchase its specific gaming headset, which is the "tied product."