To: fastpathguru who wrote (241490 ) 9/29/2007 6:23:14 PM From: wbmw Read Replies (1) | Respond to Re: Sigh... I'll just post and highlight the Wikipedia content then, since you can't seem to follow a link. Forms of abuse relating directly to pricing include price exploitation. It is difficult to prove at what point a dominant firm's prices become "exploitative" and this category of abuse is rarely found. In one case however, a French funeral service was found to have demanded exploitative prices, and this was justified on the basis that prices of funeral services outside the region could be compared.[76] A more tricky issue is predatory pricing. This is the practice of dropping prices of a product so much that in order one's smaller competitors cannot cover their costs and fall out of business. The Chicago School (economics) considers predatory pricing to be unlikely.[77] However in France Telecom SA v. Commission[78] a broadband internet company was forced to pay €10.35 million for dropping its prices below its own production costs. It had "no interest in applying such prices except that of eliminating competitors"[79] and was being crossed subsidised to capture the lion's share of a booming market. One last category of pricing abuse is price discrimination.[80] An example of this could be offering rebates to industrial customers who export your company's sugar, but not to Irish customers who are selling their goods in the same market as you are in.[81]
