Legal Definitions - tying product

Definition: A tying product is a product or service that a seller agrees to sell only if the buyer also purchases a different product or service. The product or service that the buyer wants to buy is known as the tying product, while the different product or service that the seller insists on selling is known as the tied product. Tying arrangements may be illegal under antitrust laws if they have an anticompetitive effect.

Example: A computer manufacturer agrees to sell its computers only if the buyer also purchases its software. In this example, the computer is the tying product, while the software is the tied product.

Explanation: The computer manufacturer is using a tying arrangement to force the buyer to purchase its software. This may be illegal if the manufacturer has enough economic power in the computer market to coerce the buyer into purchasing the software, and if the arrangement has anticompetitive effects in the software market.