Tying theory

Tying theory is a legal concept used to address a situation where a company requires customers to buy one product (the "tying" product) in order to purchase another product (the "tied" product). This practice can be considered anti-competitive if it unfairly limits consumer choice or harms competitors. For example, if a software company makes customers buy its hardware to use its software, it might violate tying laws. Courts examine factors like market power and whether the practice unjustly restricts trade to determine if the tying arrangement is illegal.