The pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market.
- A wide variety of business practices can run afoul of Section 2, including everything from forcing business partners to sign exclusive contracts to predatory pricing.
- While any company could, in theory, choose to engage in predatory pricing, only a monopolist with access to significant capital reserves or to the capital market could do so with any hope of success.
- If we don't have the protection of the ban on below-cost selling, people can move in to predatory pricing, out-manoeuvring local retailers, who have invested in their communities.
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