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How would you go about enforcing the alternative? Force companies to charge the same as the their competitors? And how would you evaluate if the undercut is sustainable or not?


This legislation already exists. Predatory underpricing has been a known problem for century, and is already built into antitrust laws.

The thing is that it's not generally illegal in its own right - it just forms a component of a potential antitrust case case which could result in the breakup of a company in conjunction with other anti-competitive or monopolistic behaviour.

But the precedent is there. A company destroying its competition by operating at a loss and surviving entirely by virtue of external capital injection surely falls at the very least under the spirit if not the letter of antitrust laws.


Show the numbers. Your incentive programs can't be more than your profits in a single market. That is the price you charge must be higher than the price it takes to pay for what you provide. Some things could be ignored in calculation like capital investments, operating cost and development costs.




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