Price Parity Clauses and Platform Data Acquisition

Andreea Enache and Andrew Rhodes

No 20535, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Many platforms have used a Price Parity Clause (PPC) to prevent sellers charging lower prices on other sales channels. PPCs are often considered anti-competitive and have been banned in some jurisdictions. We provide a novel rationale---centered on how PPCs affect platforms' data acquisition---for why a complete ban on PPCs may harm buyers and sellers.

Date: 2025-08
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