Definition

Predatory pricing (in antitrust law) (Ro.: prețuri agresive, Fr.: prix prédatoires, n.m.pl./ prix d’éviction, n.m.pl., Gr.: επιθετική πολιτική τιμών, Cz.: vykořisťující ceny) (See also: undercutting) = a type of anti-competitive pricing strategy, in which goods or services are sold at prices below survival costs, or given away freely, with the intent of undermining or eliminating competitors from the market.

 

Useful links

Case law

https://supreme.justia.com/cases/federal/us/479/104/case.html - Cargill, Inc. v. Monfort of Colo., Inc., 479 U.S. 104, 117 (1986)

http://www.concurrences.com/Droit-de-la-concurrence/Glossaire-des-termes-de/Predatory-pricing?lang=en – Predatory pricing, Related national and EU case laws

http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=us&vol=509&invol=209 – Brooke Group Ltd. v. Brown & Williamson Tobacco Corp., 509 U.S. 209 (1993), US Supreme Court

Organisations and associations

https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/single-firm-conduct/predatory-or-below-cost - Predatory or Below-Cost Pricing, Federal Trade Commission (USA)

https://www.oecd.org/competition/abuse/2375661.pdf – 1989, Predatory pricing, Organisation for Economic Co-Operation and Development

http://www.internationalcompetitionnetwork.org/uploads/library/doc828.pdf – The Unilateral Conduct Working Group, 2012, Unilateral Conduct Workbook. Chapter 4: Predatory Pricing Analysis, International Competition Network

http://www.justice.gov/atr/public/reports/236681_chapter4.htm – Price predation, US Department of Justice (USA)

http://ec.europa.eu/competition/publications/cpn/2009_2_8.pdf – Ballesteros, Iratxe Gurpegui, Szarka, Agnes, 2009, Predatory pricing in the telecoms sector: the ECJ rules on the issue of recouping losses, Competition Policy Newsletter, Europa.eu

http://www.cei.org/PDFs/predatorypricing.pdf – Boudreaux, Donald J., Kleit, Andrew N., 1996, How The Market Self-Polices Against Predatory Pricing, Competitive Enterprise Institute (USA)

https://www.fee.org/freeman/detail/predatory-pricing-laws-hazardous-to-consumers-health – Boudreaux, Donald, 1994, Predatory Pricing Laws: Hazardous to Consumers Health, Foundation for Economic Education (USA)

Online Publications

http://www.forbes.com/sites/timworstall/2015/03/25/predatory-pricing-doesnt-work-but-we-still-dont-like-cartels/ - Worstall, Tim, 2015, Predatory Pricing Doesn’t Work but We Still Don’t like Cartels, Forbes

http://www.theguardian.com/technology/2013/apr/09/google-faces-complaint-european-regulator-pricing – 2013, Google faces complaint to European regulator over 'predatory pricing', The Guardian

http://www.lawschool.cornell.edu/research/cornell-law-review/upload/Crane-final.pdf - Crane, Daniel A., 2005, The Paradox of Predatory Pricing, Cornell Law Review

https://www0.gsb.columbia.edu/faculty/pbolton/PDFS/BBRPrincetonDP.pdf - Bolton, Patrick, Brodley, Joseph F., Riordan, Michael H., Predatory Pricing: Strategic Theory and Legal Policy, Columbia.edu

http://www.nytimes.com/1993/08/24/business/wal-mart-on-trial-on-predatory-pricing-charges.html – Jones, Kathryn, 1993, Wal-Mart on Trial on 'Predatory Pricing' Charges, The New York Times

http://www.nytimes.com/2000/09/09/business/09SHOP.html?ex=1137560400&en=56e96432d0a4872b&ei=5070 – 2000, Germany Says Wal-Mart Must Raise Prices, The New York Times

http://www.telecomasia.net/content/eu-court-upholds-antitrust-fine-against-france-telecom-unit – Au, Maggie, 2007, EU court upholds antitrust fine against France Telecom unit, Telecomasia.net

Publications

American Bar Association, 2007, Antitrust Law Developments, 6th Edition, USA, ABA Publishing, pp.272-289

Beatty, Jeffrey, Samuelson, Susan, 2012, Business Law and the Legal Environment. Standard Edition, UK, Cengage Learning, pp. 941-942

Hirai, Leo, 2002, A game theoretic model of predatory pricing decisions in markets with network effects, Los Angeles, University of California

Motta, Massimo, 2004, Competition Policy: Theory and Practice, Cambridge, Cambridge University Press, pp. 413-418

 

By Ana Pintea