predatory pricing

predatory pricing
predatory pric·ing n: the practice of pricing goods below cost and incurring a loss in order to reduce or eliminate competition
◇ Predatory pricing constitutes an antitrust violation.

Merriam-Webster’s Dictionary of Law. . 1996.

predatory pricing
It may be an infringement under UK/EU competition laws (i.e. Competition Act 1980 and the Treaty of Rome), particularly where the party concerned is in a dominant position in a market, to price goods at a low level (below ex-factory costs) in order to drive competitors from that market.

Easyform Glossary of Law Terms. — UK law terms.

predatory pricing
The practice of selling a product at a price below the cost of producing it to drive competitors out of the market or otherwise punish rivals in a way that reduces competition. Predatory pricing may violate US antitrust laws when, after reducing competition in the market, the company will likely recoup its lost profits by raising prices above a competitive level.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

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  • predatory pricing — As antitrust violation, consists of pricing below appropriate measure of cost for purpose of eliminating competitors in short run and reducing competition in long run. Cargill, Inc., v. Monfort of Colorado, 479 U.S. 104, 117, 107 S.Ct. 484, 493,… …   Black's law dictionary

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  • predatory pricing strategy — 1) The pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market. While it has long been accepted that some firms resort to predatory pricing on occasions, the application of game theory… …   Big dictionary of business and management

  • predatory pricing — noun the pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market …   English new terms dictionary

  • predatory pricing — noun A strategy of selling a good or service at a very low price so as to drive ones competitors out of business (at which point one can raise ones prices more freely) …   Wiktionary

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