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They shouldn't be operating below costs at any time. That is anticompetitive and disingenuous.
by chillwaves 6y ago
They shouldn't be operating below costs at any time. That is anticompetitive and disingenuous.
- whatthesmack 6y agoIt's strategic, smart, and absolutely legal.
- smnrchrds 6y agoIt's called dumping and depending on the specifics and jurisdiction, it can be illegal. It falls under the general umbrella of anti-competitive actions.
- scarface74 6y agoIn that case, almost every VC backed startup would be illegal.
- X6S1x6Okd1st 6y agoAccording to the ftc for predatory pricing to be illegal you need to use it to drive out the competitors and then gouge customers until you recoup your losses. In the US anti-trust is absurdly focused on whether there is costs in the form of high prices passed onto the consumer.
- freeone3000 6y agoI'm fine with that.
- X6S1x6Okd1st 6y agohttps://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/single-firm-conduct/predatory-or-below-cost https://www.ftc.gov/tips-advice/competition-guidance/guide-a...
- smabie 6y agoYou're basically saying that unprofitable companies shouldn't be allowed to legally exist.
- treve 6y agoIt's so common on HN to see people argue law and policy and then generalize it to make an argument. They didn't say unprofitable companies shouldn't exist, but there's certainly a case to be made that large companies swooping into a market, reducing their prices to squash competition and then raising prices is not good for consumers, and there's governments that make this practice illegal. Intent matters.