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> But it may also be Reliance cross subsidizing from its retail business - selling at a loss in order to force rivals out of the market. > That would be an ama
by piva00 5y ago
> But it may also be Reliance cross subsidizing from its retail business - selling at a loss in order to force rivals out of the market.
> That would be an amazing play because they can destroy the existing distribution channel, then replace the small shops at the end of it in a few years by rolling out their own small stores with very low prices and while increasing the wholesale price they now control so the family owned small stores can't compete.
Wouldn't this be considered anti-competitive behaviour by most antitrust legislation? Price dumping to force competitors out of the market is a big no-no as far as I know but I might be absolutely wrong as a layman.
- shubb 5y agoMaybe it is, but it happens in other contexts. Here is a not very good article about it in the US: https://www.nytimes.com/2021/06/08/technology/farewell-millennial-lifestyle-subsidy.html https://www.nytimes.com/2021/06/08/technology/farewell-mille...
- msh 5y agoI think that depends on the country, so I guess that depends on local indian regulation. In my country its legal if the company does not have a dominant position in the market.