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Are they losing money on it? Lowering prices to compete isn't a crime.
by EpicEng 7y ago
Are they losing money on it? Lowering prices to compete isn't a crime.
- digitaltrees 7y agoIt is a crime if the intent is to gain so much market share that pricing power is achieved at which point predatory pricing is pursued. This is an old business model; operate at a loss until your competition is driven out of business and then sit back and collect windfall profits. This was one of the main drivers of anti trust policy to begin with.
- EpicEng 7y agoI understand that, "operate at a loss" being the key component there. Is that what's happening?