Define: Predatory Pricing

Predatory pricing refers to the practice of setting prices at an unreasonably low level with the intention of driving competitors out of the market.

Yes, predatory pricing is generally considered illegal under antitrust laws as it can harm competition and consumers.

Proving predatory pricing can be challenging, but it typically involves demonstrating that the company is selling its products or services below cost and has the intent and ability to recoup losses once competitors are eliminated.

Companies found guilty of engaging in predatory pricing may face significant fines, injunctions, and other penalties. They may also be required to pay damages to affected competitors.

No, even if predatory pricing temporarily benefits consumers by offering lower prices, it is still considered illegal as it harms competition in the long run, leading to higher prices and reduced choices.

Companies accused of predatory pricing can defend themselves by demonstrating that their pricing strategy was based on legitimate business reasons, such as cost reductions or efficiency gains.

Yes, predatory pricing can be carried out by businesses of any size. However, smaller businesses may have a harder time recouping losses and may face more scrutiny from regulators.

You can report suspected cases of predatory pricing to the relevant antitrust authorities, such as the Federal Trade Commission (FTC) in the United States.

Predatory pricing can occur in any industry where competition exists. However, it is more commonly associated with industries that have high barriers to entry, such as airlines or telecommunications.

If you believe your business has been harmed by predatory pricing, you may have legal options to seek damages or file a complaint with antitrust authorities. Consulting with an attorney experienced in antitrust law is advisable in such cases.