Predatory Pricing Report: Difference between revisions
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No prohibition on predatory pricing found. | No prohibition on predatory pricing found. | ||
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Revision as of 15:40, 9 July 2007
EU Generally[1]
Article 82 (formerly Article 86) of the EC Treaty prohibits predatory pricing. The Commission began prosecuting predatory pricing in 1985, in the AKZO case.[2] This case led to the establishment of a two-pronged test for predatory pricing. A firm was guilty of the offense if it either:
- Sets the price at below average variable cost. This amounts to a per se assumption of abusive behavior.
- Sets the price at below average total cost, but above average variable cost. This is also assumed to be predatory, but requires a specific plan by the firm to eliminate competitors.
Austria
§31(1)(5) of the Federal Act of 19 October 1988 on Cartels and other Restrictive Trade Practices prohibits the sale of goods below cost price when it cannot be justified on material grounds.
Estonia
No prohibition on predatory pricing found.
Ireland
No prohibition on predatory pricing found.