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Predatory pricing violates antitrust laws

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Reference no: EM133188020

Predatory pricing is the illegal act of setting prices low to attempt to eliminate the competition.

Predatory pricing violates antitrust laws, as it makes markets more vulnerable to a monopoly. However, allegations of this practice can be difficult to prosecute because defendants may argue successfully that lowering prices is part of normal competition, rather than a deliberate attempt to undermine the marketplace. What's more, predatory pricing doesn't always succeed in its goal because of the difficulties in recouping lost revenue and successfully eliminating competitors

Reference no: EM133188020

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