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The eight (owned by some group that owns 800) can undercut the two on price until they go out of business. The eight could refuse to deal with suppliers that de
by pessimizer 1y ago
The eight (owned by some group that owns 800) can undercut the two on price until they go out of business. The eight could refuse to deal with suppliers that deal with the two. The eight can exclusively license products and procedures within the area, which the two would not be allowed to sell. The eight could pour a lot of money into local advertising, and start rumors about the other two to be picked up in the papers. The eight could award itself certifications and awards that are denied to the two, because the 800 represent a lot of pressure in the industry.
Or they could play dirty tricks. I think the previous is what they would be expected to do, and if you were an investor you might be able to sue them if they didn't.
- Wowfunhappy 1y agoAll of these practices ought to be considered illegal anticompetitive behavior.
- acdha 1y agoThey are, but it takes time to get enforcement – and that's assuming that the PE firms don't do something like buy enough $TRUMP to get a private audience with the regulator's boss. If those two firms don't have enough assets to survive through years of legal actions, they're going out of business even if the other practices follow them. Even if the PE vultures give up, it can sour areas for a while: they start a price war and force everyone to lower prices, slash staffing, etc. If they give up after a couple of years when it turns out to be harder to corner the market than they thought, the surviving businesses are still in a worse shape and have the unenviable task of trying to restore prices / service to previous levels.
- Wowfunhappy 1y agoRight, so the government needs to do its job and enforce the law adequately!
- DangitBobby 1y agoYes, and as you can see, improving enforcement capabilities is clearly a priority of the current administration.
- classichasclass 1y agoThey are, but you're still out of business, and they have enough money to wrap you up in paper for awhile.
- deleted 1y ago[deleted]