Predatory pricing charges arise when a company is believed to be selling a product at an especially low price with the intention of driving competitors out of the market. Predatory pricing accusations may also surface when a corporation is thought to be creating a barrier to entry into the market for potential competitors.
By allegedly eliminating competition, the predatory pricer is said to be able to eventually raise prices above what the market would ordinarily bear.
Predatory pricing accusations are difficult to prove because the prosecuting agent must establish that the drop in prices is due to the intent to remove competitors from the market, and not simply the result of regular market competition.
Successful businesses with significant market shares are most vulnerable to antitrust charges. However, predatory pricing cases are often at odds with other forms of antitrust law, as the goal of antitrust legislation is to protect legitimate price competition. The United States Supreme Court has made it very difficult to substantiate antitrust claims on the basis of predatory pricing because discounting creates a (at the very least temporary) benefit to consumers.
Nevertheless, the mere appearance of predatory pricing may still result in allegations of monopolization, which can be inconvenient in the most favorable situations. If you are facing a federal investigation due to alleged predatory pricing, you need aggressive legal representation at an early date.
Antitrust Attorneys at The Blanch Law Firm have the strength and experience to defeat predatory pricing accusations, whether in a courtroom or through outright dismissal of the charges.
Contact one of our predatory pricing attorneys today by calling 888-984-5079 . Your initial consultation is both free and confidential.