Indirect Price Discrimination

1. The Clayton Act claims price discrimination through brokerage commissions is indirect price discrimination
   • A broker is paid commission to serve as a link between a buyer and seller. They are paid either by the buyer or seller
   • A buyer can price discriminate by setting up a sham broker who then turns the commission over to the buyer, thus giving the buyer a price discount
2. Discriminatory allowances and services are another form of indirect price discrimination
   • This is only illegal if it is discriminatory
   • Examples include paying for advertising, or providing the promotional services to a favored buyer