Predatory Pricing - Examples of Alleged Predatory Pricing

Examples of Alleged Predatory Pricing

  • France Telecom/Wanadoo—The European Court of Justice judged that Wanadoo (Now Orange Internet France) charged less than cost in order to gain a lead in the French broadband market. They have been ordered to pay a fine of €10.35m, although this can still be contested.
  • According to an AP article a law in Minnesota forced Wal-Mart to increase its price for a one month supply of the prescription birth control pill Tri-Sprintec from $9.00 to $26.88.
  • According to a New York Times article the German government ordered Wal-Mart to increase its prices.
  • According to an International Herald Tribune article, the French government ordered amazon.com to stop offering free shipping to its customers, because it was in violation of French predatory pricing laws. After Amazon refused to obey the order, the government proceeded to fine them €1,000 per day. Amazon continued to pay the fines instead of ending its policy of offering free shipping.
  • Low oil prices during the 1990s, while being financially unsustainable, effectively stifled exploration to increase production, delayed innovation of alternative energy sources and eliminated competition from other more expensive yet productive sources of petroleum such as stripper wells.
  • In the Darlington Bus War, Stagecoach Group offered free bus rides in order to put the rival Darlington Corporation Transport out of business.

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