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Originally Posted by OccultHawk
Very illegal?
I thought that was known as "loss leader" and used all over.
I'm not arguing, I'm trying to learn. That's different than price fixing so what's that called?
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Just looked it up, and apparently it's not directly illegal, but if it can be proved that it will result in a monopoly that hurts consumers, then the business can be hit with anti-trust laws.
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United States
Predatory pricing practices may result in antitrust claims of monopolization or attempts to monopolize. Businesses with dominant or substantial market shares are more vulnerable to antitrust claims. However, because the antitrust laws are ultimately intended to benefit consumers, and discounting results in at least short-term net benefit to consumers, the U.S. Supreme Court has set high hurdles to antitrust claims based on a predatory pricing theory. The Court requires plaintiffs to show a likelihood that the pricing practices will affect not only rivals but also competition in the market as a whole, in order to establish that there is a substantial probability of success of the attempt to monopolize.[3] If there is a likelihood that market entrants will prevent the predator from recouping its investment through supra competitive pricing, then there is no probability of success and the antitrust claim would fail. In addition, the Court established that for prices to be predatory, they must be below the seller's cost.
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Wikipedia: Predatory Pricing