3 ms·

> It can be considered predatory pricing if competitors can't sustain equal prices without going out of business and you can raise prices later. Isn't this the

• zaarn 8y ago
  Basically yes. That kind of stuff, atleast in Germany, is frowned upon. Competing on the market on pure merit is preferred. However, it doesn't mean that if you can do it cheaper that's disallowed, quite the opposite. If you can do it cheaper it's explicitly encouraged and that's what these policies try to encourage. What they discourage, is as you say, burn money to drive out other players, then run at the same price as the previous players. It's also somewhat why the EU fined google, at least in part, because Google's behavior did not allow phone vendors to compete on their merit in the market by being unable to offer alternative Android variants if they want Google's variant. It's a different free market philosophy than the US free market similarly to how other philosophies (like Freedom of Speech) work different in the EU.