Tying vs. Bundling: Legal Distinctions

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Question:

Tying is a legal strategy, but bundling is illegal in the United States.

False

True

Answer:

False. Tying is generally considered illegal under U.S. antitrust laws if it involves the use of market power in one product to force the sale of another product. Bundling, on the other hand, is legal and can be a common business practice, as long as it does not violate antitrust laws. However, certain forms of bundling can raise legal concerns if they are deemed to harm competition.