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
USA
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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