"Predatory pricing" refers to a tactic used by businesses to set their prices artificially low in order to eliminate or weaken competitors. It's like when a bigger animal hunts down smaller ones by offering prices so low that smaller businesses cannot compete and are forced to shut down.
Full definition
Once a large company has spent its capital to
fund predatory pricing and drive its competitors out of business, there's no reason to keep selling for cheap.
It does so by employing the most blatant forms
of predatory pricing to destroy its retail competitors.
Agency pricing, in which publishers set prices and booksellers take a fixed commission, promised to make it easier for small booksellers to compete by removing the threat of
predatory pricing by retailing behemoths like Amazon.
The decision came after Coles was taken to the commission on fears that the price reductions, which kick - started a price war with rival Woolworths, was engaging
in predatory pricing which would affect dairy farmers.
With perceived
predatory pricing practices, including the so - called «denial of money» attack, so commonplace, it is no surprise that this aspect of cloud growth has become a meme and has even been jokingly referenced on the television show Silicon Valley.
Even if Amazon engaged in so -
called predatory pricing by selling below cost, the solution is to go to court or appeal to Congress, Lande said.
In the Special Events hall of today's IDPF Digital Book event, a last minute guest speaker, Paul Aiken from the Author's Guild, gave a ten - minute one - sided explanation of the DoJ investigation against Apple and five publishers but he somehow managed to insert the phrase, «Amazon's
predatory pricing model,» three times, despite the fact that Amazon is not named in the investigation or lawsuits.
The Western Australian government has called on its federal counterpart to beef up its Trade Practices Act (TPA) to help protect small business
against predatory pricing by big business.
We blame it for a variety of ills,
including predatory pricing that undercuts locally - owned stores, being strongly anti-union, and paying its employees just enough to keep working but not enough to do so without public assistance.
It forces retailers to compete on customer experience (quality of discovery and matching tools, community, purchase experience, library features) rather than price (
predatory pricing from deep - pocketed competitors is the strategy to win here, at the expense of all other retailers and potential startup competitors.
He stated: «Business model like Uber's - based on
predatory pricing made possible by exploitation of drivers and multinational tax avoidance - is immoral.»
This is all speculation, of course, but Jason Calacanis got the ball rolling with a post late last year entitled «Rumor: Amazon Retail Stores Coming &
Predatory Pricing Channel Destruction.»
Predatory price policies like those pursued by Amazon favor monopolies which are bad for consumers (less choices and eventually higher prices) and for the industry.
Additionally, some were allowing a greater degree of discounting, which had encouraged ecommerce to
offer predatory pricing.
A number of big cases are coming up, however, notably the Sasol Polymers excessive pricing and
Media24 predatory pricing matters.
Ken also has experience representing both plaintiffs and defendants in antitrust litigation, and has litigated a variety of antitrust issues under the Sherman, Clayton, and Robinson Patman Acts, including cases
involving predatory pricing, price fixing, Walker Process, tying, group boycotts, monopsony, monopolization, corporate bribery, and issues involving the intersect of intellectual property and antitrust.
What's more, conveyancing was ripped away from the bar by
temporary predatory pricing and now the poor Americans have very high - cost conveyancing coupled with very poor service - an example of ABS in action.
Yes, someone could in theory sink a boatload of money into purchasing a massive fleet of cars but would need to additionally invest in
predatory pricing just to enter the market and become an app on people's phones.
Qualcomm lost its bid to block potential late fees for failing to dig up old documents sought by Europe's anti-trust regulator, which alleges the company engaged
in predatory pricing seven years ago that harmed a competitor.